Taxation (Cross-border Trade) Bill · PDF fileIn my view the provisions of the Taxation...

Bill 128 57/1

Taxation (Cross-border Trade) Bill

EXPLANATORY NOTES

Explanatory notes to the Bill, prepared by the Treasury, are published separately asBill 128—EN.

EUROPEAN CONVENTION ON HUMAN RIGHTS

The Chancellor of the Exchequer has made the following statement under section19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Taxation (Cross-border Trade) Bill are compatiblewith the Convention rights.

Bill 128 57/1


CONTENTS

PART 1

IMPORT DUTY

The charge to tax

1 Charge to import duty2 Chargeable goods

Incurring of liability to import duty

3 Obligation to declare goods for a Customs procedure on import4 When liability to import duty incurred5 Goods not presented to Customs or Customs declaration not made

Person liable to import duty

6 Person liable to import duty

Amount of import duty: the customs tariff, preferences, safeguarding etc

7 Amount of duty: introduction8 The customs tariff9 Preferential rates: arrangements with countries or territories outside UK

10 Preferential rates given unilaterally11 Quotas12 Tariff suspension13 Dumping of goods, foreign subsidies and increases in imports14 Increases in imports or changes in price of agricultural goods15 International disputes etc

Amount of import duty: supplementary

16 Value of chargeable goods17 Place of origin of chargeable goods18 Currency

Reliefs

19 Reliefs

Taxation (Cross-border Trade) Billii

Administration etc

20 Notification and payment of import duty, etc21 Customs agents22 Authorised economic operators23 Approvals and authorisations granted under regulations24 Rulings as to application of customs tariff or place of origin

Supplementary

25 Disclosure of information26 Co-operation with other customs services27 Fees for exercise of functions in connection with import duty28 Requirement to have regard to international obligations29 Consequential amendments30 General provision for the purposes of import duty

UK's customs union

31 Territories forming part of a customs union with UK

Regulations etc

32 Regulations etc

Interpretation etc

33 Meaning of “domestic goods”34 Presentation of goods to Customs on import or export35 Exports made in accordance with applicable export provisions36 Outward processing procedure37 Minor definitions38 Table of definitions

PART 2

EXPORT DUTY

39 Charge to export duty40 Regulations under section 39: supplementary

PART 3

VALUE ADDED TAX

41 Abolition of acquisition VAT and extension of import VAT42 EU law relating to VAT43 Other VAT amendments connected with withdrawal from EU

PART 4

EXCISE DUTIES

44 Excise duties: postal packets sent from overseas45 General regulation making power for excise duty purposes etc

Taxation (Cross-border Trade) Bill iii

46 Exercise of information powers in connection with excise duty47 EU law relating to excise duty48 Regulations under ss. 44 to 4749 Sections 44 to 48: interpretation50 Excise duty amendments connected with withdrawal from EU

PART 5

OTHER PROVISION CONNECTED WITH WITHDRAWAL FROM EU

51 Power to make provision in relation to VAT or duties of customs or excise52 Subordinate legislation relating to VAT or duties of customs or excise53 Meaning of “excise duty”

PART 6

FINAL PROVISIONS

54 Consequential and transitional provision55 Commencement56 Short title

Schedule 1 — Customs declarationsSchedule 2 — Special Customs procedures

Part 1 — Entitlement to declare goods for special customs proceduresPart 2 — Storage procedurePart 3 — Transit procedurePart 4 — Inward processing procedurePart 5 — Authorised use procedurePart 6 — Temporary admission procedurePart 7 — Supplementary provisions

Schedule 3 — Eligible developing countriesPart 1 — IntroductionPart 2 — Least developed countriesPart 3 — Other eligible developing countriesPart 4 — Power to amend Parts 2 and 3

Schedule 4 — Dumping of goods or foreign subsidies causing injury to UKindustry

Part 1 — Key definitionsPart 2 — Dumping and subsidisation investigationsPart 3 — Provisional remedy: requiring a guaranteePart 4 — Definitive remedies: anti-dumping amount or countervailing

amountPart 5 — UndertakingsPart 6 — Supplementary

Schedule 5 — Increase in imports causing serious injury to UK producersPart 1 — Key definitionsPart 2 — Safeguarding investigationsPart 3 — Provisional remedy: provisional safeguarding amountPart 4 — Definitive remedies: definitive safeguarding amount & tariff

rate quotas

Taxation (Cross-border Trade) Billiv

Part 5 — SupplementarySchedule 6 — Import duty: notification of liability, payment etcSchedule 7 — Import duty: consequential amendments

Part 1 — Replacement of EU customs dutiesPart 2 — Amendments of CEMA 1979Part 3 — Amendments of other enactments

Schedule 8 — VAT amendments connected with withdrawal from EUPart 1 — Amendments of Value Added Tax Act 1994Part 2 — Amendments of other enactments

Schedule 9 — Excise duty amendments connected with withdrawal from EU

Bill 128 57/1

Taxation (Cross-border Trade) BillPart 1 — Import duty

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B I L LTO

Impose and regulate a duty of customs by reference to the importation ofgoods into the United Kingdom; to confer a power to impose and regulate aduty of customs by reference to the export of goods from the United Kingdom;to make other provision in relation to any duty of customs in connection withthe withdrawal of the United Kingdom from the EU; to amend the lawrelating to value added tax, and the law relating to any excise duty on goods,in connection with that withdrawal; and for connected purposes.

Most Gracious Sovereign

E, Your Majesty’s most dutiful and loyal subjects, the Commons of the UnitedKingdom in Parliament assembled, towards raising the necessary supplies to

defray Your Majesty’s public expenses, and making an addition to the publicrevenue, have freely and voluntarily resolved to give and to grant unto Your Majestythe several duties hereinafter mentioned; and do therefore most humbly beseechYour Majesty that it may be enacted, and be it enacted by the Queen’s most ExcellentMajesty, by and with the advice and consent of the Lords Spiritual and Temporal, andCommons, in this present Parliament assembled, and by the authority of the same, asfollows:—

PART 1

IMPORT DUTY

The charge to tax

1 Charge to import duty

A duty of customs (to be known as “import duty”) is charged in accordancewith provision made by or under this Part by reference to the importation ofchargeable goods into the United Kingdom.

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2 Chargeable goods

Goods are “chargeable goods” for the purposes of this Part unless they aredomestic goods.

Incurring of liability to import duty

3 Obligation to declare goods for a Customs procedure on import

(1) Chargeable goods which are presented to Customs on import must be declaredfor a Customs procedure by the making of a Customs declaration.

(2) It is the Customs procedure for which the goods are declared that determineswhen a liability to import duty is incurred.

(3) The Customs procedures for which chargeable goods may be declared are asfollows—

(a) a procedure under which the goods are released for free circulation inthe United Kingdom (referred to in this Part as “the free-circulationprocedure”), or

(b) a special Customs procedure.

(4) In this Part “special Customs procedure” means—(a) a storage procedure,(b) a transit procedure,(c) an inward processing procedure, or(d) an authorised use procedure or temporary admission procedure.

(5) Schedule 1 makes provision about—(a) the period within which Customs declarations are required to be made

(and associated matters),(b) the making, amendment or withdrawal of Customs declarations, (c) the acceptance of Customs declarations by HMRC,(d) the verification of Customs declarations by HMRC officers, and(e) the release of goods to, and the discharge of goods from, Customs

procedures.

(6) Schedule 2 makes further provision about special Customs procedures.

4 When liability to import duty incurred

(1) If—(a) chargeable goods are declared for the free-circulation procedure, and(b) HMRC accept the declaration,

a liability to import duty is incurred at the time of the acceptance.

(2) If chargeable goods are declared for—(a) a storage procedure,(b) a transit procedure, or(c) an inward processing procedure,

the general rule is that a liability to import duty is not incurred by reference tothe importation of the goods.

(3) This rule is subject to the following two exceptions—

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(a) if there is no entitlement to make the Customs declaration concerned, aliability to import duty is incurred at the time the (purported)declaration is made, and

(b) if there is a breach by any person of any requirement relating to theprocedure, a liability to import duty is incurred at the time at which thebreach first occurs.

(4) In the case of goods declared for an authorised use procedure or temporaryadmission procedure—

(a) a liability to import duty is incurred at the time the declaration isaccepted by HMRC,

(b) if there is an entitlement to make the declaration for the procedure, therate of import duty is lower than the normal rate (see section 19(4)),

(c) if there is no such entitlement, the liability is at the normal rate, and(d) if there is a breach of a requirement relating to the procedure, a further

liability to import duty arises at the time of the breach at the normal ratereduced to take account of the amount of any earlier liability.

(5) In the case of goods declared for a temporary admission procedure, see alsosection 19(5).

(6) In this section any reference to the breach of a requirement relating to a specialCustoms procedure is to—

(a) a breach, occurring while the procedure has effect, of the terms of thedeclaration for the procedure or of any other requirement imposed inrelation to the procedure by or under Schedule 2, or

(b) a breach, occurring at any time after the declaration was made, of anyother requirement imposed by an HMRC officer in relation to the goodsfor which the declaration was made.

(7) In this section “the normal rate” means the rate that, at the time of thedeclaration or breach (as the case may be), would be applicable if section 19(4)were ignored.

5 Goods not presented to Customs or Customs declaration not made

(1) If chargeable goods—(a) are imported into the United Kingdom, and(b) are not presented to Customs on import (if so required),

the goods are liable to forfeiture (as to which, see Part 11 of CEMA 1979) at thetime of importation.

(2) If goods are liable to forfeiture as a result of—(a) subsection (1), or(b) paragraph 1(5) or 3(4) of Schedule 1 (no Customs declaration made),

a liability to import duty is incurred at the time at which the goods becomeliable to forfeiture.

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Person liable to import duty

6 Person liable to import duty

(1) If a Customs declaration is made in respect of any chargeable goods, the personin whose name the declaration is made is the person liable to import duty inrespect of the goods.

(2) If a liability to import duty is incurred as a result of section 5 in respect of anychargeable goods, any person who is in possession or control of the goodswhen they enter the United Kingdom is liable to import duty in respect of thegoods.

(3) In addition to any person liable as a result of subsection (1) or (2), each of thefollowing persons is liable to import duty—

(a) a person on whose behalf a Customs declaration is made,(b) a person liable as a result of provision made by section 21(6) (Customs

agents),(c) a person liable as a result of provision made under paragraph 21 of

Schedule 2 (special Customs procedures), and(d) a person otherwise involved in a breach of a relevant Customs

obligation.

(4) For this purpose a person is otherwise involved in a breach of a relevantCustoms obligation if—

(a) the person provides false information in connection with a chargeableCustoms declaration and the person knew, or ought reasonably to haveknown, that the information was false,

(b) the person (“A”) acted (whether as a Customs agent or otherwise) onbehalf of another person who breached a relevant Customs obligationand A knew, or ought reasonably to have known, of the breach by thatother person,

(c) the person participated in, or was otherwise involved in, a breach of arelevant Customs obligation and knew, or ought reasonably to haveknown, of the breach, or

(d) the person possesses or controls the goods at a time when there hasbeen a breach of a relevant Customs obligation and the person knew, orought reasonably to have known, of the breach.

(5) For the purposes of subsection (4)(a) a person (“P”) provides “false informationin connection with a chargeable Customs declaration” if—

(a) P provides information to another person to enable that other person tomake a Customs declaration,

(b) that other person makes the declaration, and(c) the information provided by P is false.

(6) For the purposes of subsection (4) there is “a breach of a relevant Customsobligation” if—

(a) there is a breach of a requirement imposed on any person that resultsin a liability to import duty, or

(b) circumstances otherwise arise that result in a liability to import duty,and, in a case within paragraph (b) of this subsection, references to knowledgeof the breach are to knowledge of those circumstances.

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(7) If two or more persons are liable to import duty in any case, those persons arejointly and severally liable to import duty in that case.

Amount of import duty: the customs tariff, preferences, safeguarding etc

7 Amount of duty: introduction

(1) The amount of import duty applicable to any goods is to be determined inaccordance with the customs tariff (see section 8), as amended or adjusted byprovision made under any of the following sections—

(a) section 9 (preferential rates: arrangements with countries or territoriesoutside UK),

(b) section 10 (preferential rates given unilaterally),(c) section 11 (quotas),(d) section 12 (tariff suspension),(e) section 13 (dumping of goods, foreign subsidies and increases in

imports),(f) section 14 (increases in imports or changes in price of agricultural

goods), and(g) section 15 (international disputes etc).

(2) See also—(a) sections 16 to 18 (which deal with the valuation of goods, their place of

origin and cases where amounts are expressed in a foreign currency),and

(b) section 19 (which enables provision to be made for full or partial relieffrom import duty).

8 The customs tariff

(1) The Treasury must make regulations establishing, and maintaining in force, asystem which—

(a) classifies goods according to their nature, origin or any other factor,(b) gives codes to the goods as so classified,(c) specifies the rate of import duty applicable to goods falling within

those codes (whether by a formula or otherwise), and(d) contains rules for determining the amount of import duty applicable to

those goods.

(2) This system is referred to in this Part as the customs tariff.

(3) The customs tariff may provide for the amount of any import duty applicableto any goods falling within any code to be determined by reference to either orboth of the following—

(a) the value of the goods, and(b) the weight or volume of the goods or any other measure of their

quantity or size.

(4) The customs tariff may include provision as to the meaning of any expressionused in it.

(5) In considering the rate of import duty that ought to apply to any goods in astandard case, the Treasury must have regard to—

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(a) the interests of consumers in the United Kingdom,(b) the desirability of maintaining and promoting the external trade of the

United Kingdom,(c) the desirability of maintaining and promoting productivity in the

United Kingdom, and(d) the extent to which the goods concerned are subject to competition.

(6) In considering the rate of import duty that ought to apply to any goods in astandard case, the Treasury must also have regard to any recommendationabout the rate made to them by the Secretary of State.

(7) In considering what recommendation to make, the Secretary of State must haveregard to the matters set out in subsection (5)(a) to (d).

(8) In this section “a standard case” means a case other than one to which any ofsections 9 to 15 or 19(4) apply (preferential rates, quotas, tariff suspension,safeguarding, etc).

9 Preferential rates: arrangements with countries or territories outside UK

(1) If—(a) Her Majesty’s government in the United Kingdom makes

arrangements with the government of a country or territory outside theUnited Kingdom, and

(b) the arrangements contain provision for the rate of import dutyapplicable to goods, or any description of goods, originating from thecountry or territory to be lower than the applicable rate in the customstariff in its standard form,

the Treasury may make regulations to give effect to the provision made by thearrangements (whether by amending the customs tariff or otherwise).

(2) The reference here to the customs tariff in its standard form is to the tariff as ithas effect without regard to any provision made under any of sections 10 to 15or section 19(4).

(3) The power of the Treasury to make regulations under this section is exercisableonly on the recommendation of the Secretary of State.

10 Preferential rates given unilaterally

(1) The Secretary of State may by regulations establish a scheme (“a tradepreference scheme”) under which the rate of import duty applicable to goods,or any description of goods, originating from an eligible developing country islower than the applicable rate in the customs tariff in its standard form.

(2) A trade preference scheme may—(a) apply to one or more eligible developing countries,(b) provide for the application of the lower rates to be subject to the

meeting of specified conditions, and(c) make provision about the variation, suspension and withdrawal of the

application of the lower rates.

(3) If a trade preference scheme is established under subsection (1), regulationsunder subsection (1)—

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(a) must provide for a nil rate of import duty to be applicable to all goodsoriginating from a least developed country, except arms andammunition, and

(b) may make provision about the suspension and withdrawal of theapplication of the nil rate.

(4) In subsection (3)—(a) “arms and ammunition” has the meaning specified in regulations made

by the Secretary of State, and(b) “suspension” and “withdrawal” may include the application of another

rate that is lower than the applicable rate in the customs tariff in itsstandard form.

(5) The references in this section to the customs tariff in its standard form are tothe tariff as it has effect without regard to any provision made under any ofsection 9, sections 11 to 15 or section 19(4).

(6) In Schedule 3—(a) Part 1 defines “eligible developing country” and “least developed

country” for the purposes of this section,(b) Parts 2 and 3 contain lists for the purpose of those definitions, and(c) Part 4 confers power to amend those lists.

11 Quotas

(1) Regulations may make provision for determining the amount of import dutyapplicable to any goods that are subject to a quota.

(2) Goods are subject to a quota for the purposes of this section if—(a) Her Majesty’s government in the United Kingdom makes

arrangements with the government of a country or territory outside theUnited Kingdom and the arrangements contain provision for the goodsconcerned to be subject to a quota, or

(b) the Treasury otherwise consider that it is appropriate for the goodsconcerned to be subject to a quota.

(3) Regulations may make any provision that the person making them considersappropriate for the purposes of this section, including (for example)—

(a) provision specifying the factors by reference to which a quota is to bedetermined,

(b) provision imposing conditions subject to which a quota has effect,(c) provision for a quota in respect of specified goods to be subject to a

licensing or allocation system (see also subsection (4)), and(d) any other provision in relation to the administration of a quota.

(4) Regulations made under subsection (3) which make provision for a quota inrespect of specified goods to be subject to a licensing or allocation system mayinclude—

(a) provision authorising any public body to grant licences or determine asystem for allocating the quotas,

(b) provision specifying the cases in which a person is eligible to make useof a quota,

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(c) provision specifying the conditions subject to which any person maymake use of a quota (including provision for the giving of a guaranteeof a specified amount),

(d) provision authorising the conditions to be imposed by a licence or otherdocument,

(e) provision requiring the payment of fees by any person in connectionwith any application for a licence or an allocation, and

(f) provision generally in relation to the administration of the licensing orallocation system.

(5) Any fees payable as a result of provision made under subsection (4)(e) must bepaid into the Consolidated Fund.

(6) The power to make regulations under this section providing for a quota inrespect of specified goods to be subject to a licensing or allocation system isexercisable by the Secretary of State.

(7) The power to make regulations under this section containing any otherprovision is exercisable by the Treasury; and, in considering what provision toinclude in the regulations, the Treasury must have regard to anyrecommendation made to them by the Secretary of State.

12 Tariff suspension

(1) The Treasury may by regulations make provision securing that, for a specifiedperiod, the rate of import duty applicable to specified goods is to be lower thanthe applicable rate in the customs tariff in its standard form.

(2) The regulations must provide that (subject to any exceptions) the Secretary ofState is obliged—

(a) to consider a request made by any person for goods to be specifiedgoods for the purposes of the regulations, and

(b) to make recommendations to the Treasury about the request.

(3) The regulations may—(a) make provision for extending the specified period (including by means

of a notice),(b) impose conditions on the application of the lower rate, and(c) make further provision about requests made to the Secretary of State

(including provision about the form and contents of a request and themanner, and date by which, a request is to be made).

(4) In this section the reference to the customs tariff in its standard form is to thetariff as it has effect without regard to any provision made under any ofsections 9 to 11, sections 13 to 15 or section 19(4).

(5) In considering what provision to include in any regulations under this section,the Treasury must have regard to any recommendation made to them by theSecretary of State.

13 Dumping of goods, foreign subsidies and increases in imports

(1) Functions relating to import duty are conferred on the Trade RemediesAuthority (“the TRA”) by—

(a) Schedule 4 (dumping and foreign subsidies causing injury to UKindustry), and

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(b) Schedule 5 (increased imports causing serious injury to UK producers).

(2) If the Secretary of State accepts a recommendation by the TRA under provisionmade by or under Schedule 4 or 5 that an additional amount of import dutyshould be applicable to goods, the Secretary of State must by public noticemake provision giving effect to the recommendation.

(3) If the Secretary of State accepts a recommendation by the TRA under provisionmade by or under Schedule 5 that goods should be subject to a tariff rate quota,the Secretary of State must by public notice make provision for determining theamount of import duty applicable to the goods in order to give effect to therecommendation.

(4) If the Secretary of State accepts a recommendation by the TRA under provisionmade by or under Schedule 4 or 5 that—

(a) the application of an additional amount of import duty to goods underthis section should be suspended, varied or revoked, or

(b) the application of a quota to which goods are subject under this sectionshould be suspended, varied or revoked,

the Secretary of State must by public notice make provision giving effect to therecommendation.

(5) The Secretary of State may make regulations containing any provision that theSecretary of State considers appropriate for the purposes of subsections (3) and(4)(b); and section 11(3)(a) to (d), (4) and (5) apply to regulations under thissubsection as they apply to regulations under section 11(3).

14 Increases in imports or changes in price of agricultural goods

(1) The Treasury may by regulations make provision for an additional amount ofimport duty to be applicable to specified agricultural goods, or a specifieddescription of agricultural goods, if—

(a) the volume of imports of the specified goods, or goods of the specifieddescription, into the United Kingdom during a specified periodexceeds a specified trigger level, or

(b) the import price of the goods has fallen below a specified trigger price.

(2) The regulations may (among other things) make provision—(a) limiting the period for which an additional amount of import duty is

applicable;(b) for the suspension of the application of an additional amount of import

duty;(c) requiring the giving of a guarantee in respect of an additional amount

of import duty which is potentially applicable to goods, where therepresentative price for the goods has fallen below the specified triggerprice and the import price of the goods is higher than thatrepresentative price;

(d) specifying the representative price for goods or a description of goods,(whether by a formula or otherwise) and providing for representativeprices to be adjusted (whether by a formula or otherwise).

(3) The power of the Treasury to make regulations under this section is exercisableonly on the recommendation of the Secretary of State.

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15 International disputes etc

(1) If—(a) a dispute or other issue has arisen between Her Majesty’s government

in the United Kingdom and the government of a country or territory,and

(b) Her Majesty’s government in the United Kingdom is authorised underinternational law to deal with the issue by varying the amount ofimport duty in the case of goods, or a description of goods, originatingfrom the country or territory,

the Secretary of State may make regulations varying the amount of importduty applicable to the goods or the description of goods.

(2) In exercising the power to make the regulations in the case of a disputeaffecting any goods, the Secretary of State must secure that the amount ofimport duty payable in that case takes account of any additional amount ofimport duty which—

(a) is payable under section 13 as a result of the goods being subsidised, or (b) would have been so payable had an undertaking not been accepted in

respect of the goods.

Amount of import duty: supplementary

16 Value of chargeable goods

(1) This section makes provision for determining the value of chargeable goods forthe purposes of this Part.

(2) The general rule is that the value of the goods is the transaction value of thegoods when sold for export to the United Kingdom.

(3) For this purpose “the transaction value” means the total amount of theconsideration—

(a) payable for the goods, or(b) payable in connection with the importation of the goods into the United

Kingdom,subject to the inclusion or exclusion of matters specified in regulations madeby the Treasury.

(4) The regulations may make provision for treating a matter to be of a specifiedamount or value.

(5) Regulations made by the Treasury may make provision for the value of goodsfor the purposes of this Part to be a value other than the transaction value.

(6) The following are examples of the kind of provision that may be made by theregulations—

(a) provision dealing with transactions between persons who are relatedto, or connected with, each other in a specified way, and

(b) provision dealing with cases where a transaction value cannot, orcannot readily, be determined.

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17 Place of origin of chargeable goods

(1) This section makes provision for determining the place of origin of chargeablegoods for the purposes of this Part.

(2) Goods are to be regarded as originating from a country or territory if they arewholly obtained in the country or territory.

(3) If goods are obtained in two or more countries or territories, the goods are tobe regarded as originating from the last country or territory in whichsubstantial processing of them has taken place that is economically justified.

(4) Processing of any goods is to be regarded as substantial only if—(a) it results in the manufacture of a new product or represents an

important stage of manufacture, and(b) it takes place in an undertaking equipped for the purpose.

(5) It is for the person making a Customs declaration to show that goods originatefrom a particular country or territory.

(6) The Treasury may by regulations make provision for the purposes of thissection, including (for example) provision—

(a) for determining what constitutes, or does not constitute, processingthat is economically justified,

(b) for determining what constitutes, or does not constitute, an importantstage of manufacture,

(c) as to cases in which goods are, or are not, to be regarded as originatingfrom a country or territory, and

(d) as to the evidence which is to be required, or is to be sufficient, for thepurpose of showing that goods originate from a particular country orterritory.

(7) In relation to any case where the applicable rate of import duty is determinedunder section 9 or 10 (preferences), the provision that may be made byregulations under subsection (6) includes—

(a) provision for the place of origin of the goods to be determined inaccordance with the regulations,

(b) provision for regarding goods exported by or on behalf of personsapproved in accordance with the regulations as originating from acountry or territory or for regarding only goods exported by or onbehalf of approved persons as originating from a country or territory,

(c) provision for different categories of approved persons,(d) provision requiring the Treasury to publish a list of persons who are for

the time being approved persons and information about the category ofapproval, and

(e) other provision about approved persons.

(8) The power to make regulations under this section is exercisable only on therecommendation of the Secretary of State.

18 Currency

(1) The value of chargeable goods for the purposes of this Part must be calculatedand expressed in sterling.

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(2) If an amount that is relevant for the purpose of calculating the value of goodsfor the purposes of this Part is expressed in a currency other than sterling, theamount must be converted into its sterling equivalent.

(3) The conversion must be made in accordance with provision contained in apublic notice given by HMRC Commissioners.

(4) The public notice may make provision—(a) specifying the exchange rate that must be used for the purposes of this

section,(b) for the conversion to be made by reference to an exchange rate (or rates)

applicable at any time (including a time earlier than that at which animportation took place) or by reference to the average exchange rate fora specified period,

(c) for the exchange rate determined in accordance with the notice to applyto transactions or other events taking place in a specified period,

(d) for adjusting the applicable exchange rate if the value of sterling againstthe currency concerned has increased or decreased by more than aspecified percentage, and

(e) for any conversion to be rounded up or down.

Reliefs

19 Reliefs

(1) The Treasury may by regulations make provision for full or partial relief froma liability to import duty.

(2) The regulations may provide for the relief to be given by reference to anyfactor, for example—

(a) the nature or origin of goods or anything else by reference to whichgoods are classified in the customs tariff,

(b) anything in the customs tariff by reference to which the amount ofimport duty applicable to goods is determined,

(c) the purposes for which goods are imported,(d) the person by whom, or for whose benefit, goods are imported, and(e) the circumstances in which goods are imported.

(3) The regulations may provide for a relief to be conditional on (among otherthings) the export of goods in accordance with the applicable exportprovisions.

(4) In the case of goods that are declared for an authorised use procedure ortemporary admission procedure, the Treasury—

(a) must exercise the power to make regulations under this section so as tosecure that the rate of import duty applicable to the goods is lower thanthe applicable rate in the customs tariff in its standard form, and

(b) may secure that result by amending the customs tariff.

(5) If the regulations provide for partial relief in respect of goods declared for atemporary admission procedure, the regulations must secure that—

(a) the partial relief operates by way of additional charges to import dutyby reference to any period during which the procedure has effect, and

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(b) the total of the additional charges does not exceed the amount of theliability in the absence of the partial relief.

(6) If the regulations provide for partial relief in any other case, the regulationsmay make provision corresponding to that mentioned in subsection (5)(a) and(b).

(7) The reference in this section to the customs tariff in its standard form is to thetariff as it has effect without regard to any provision made under any ofsections 9 to 15 (preferential rates, quotas, tariff suspension, safeguarding, etc).

Administration etc

20 Notification and payment of import duty, etc

Schedule 6 makes provision for—(a) the notification of any liability to pay import duty,(b) the payment of import duty,(c) the giving of guarantees in respect of any liability to pay import duty,(d) the repayment of import duty,(e) the remission of import duty, and(f) the recovery of import duty.

21 Customs agents

(1) A person (“the principal”) may appoint any other person (a “Customs agent”)to act on the principal’s behalf for the purposes of this Part, and—

(a) the agent may make Customs declarations in the name of the principal(and in that case the agent acts as a “direct agent”), or

(b) the agent may make Customs declarations in the agent’s own name(and in that case the agent acts as an “indirect agent”).

(2) The appointment of a person as a Customs agent, and the withdrawal of anappointment of a person as a Customs agent, must be disclosed to HMRC inaccordance with regulations made by HMRC Commissioners.

(3) The effect of an appointment of a person as a Customs agent is that anythingdone under, or otherwise for the purposes of, this Part by, or in relation to, theagent is regarded as done under, or otherwise for the purposes of, this Part by,or in relation to, the principal (and not by the agent).

(4) There is an exception to this rule if a Customs agent acts as an indirect agent(and see also section 37(8)(b)).

(5) In that case, the indirect agent is liable to import duty in accordance withsection 6(1) (and the principal is also liable to import duty in accordance withsection 6(3)(a)).

(6) If a Customs agent acts as a direct agent, the agent is also liable to import dutyif—

(a) the agent acts at time when the appointment has not been disclosed toHMRC as mentioned in subsection (2),

(b) the agent acts at a time when the appointment of the person as aCustoms agent has been withdrawn,

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(c) the agent otherwise purports to act on behalf of the principal when theagent has no authority to do so, or

(d) a liability to import duty is incurred by reference to the importation ofgoods declared for a Customs declaration and the declaration was notmade in accordance with regulations under paragraph 9 of Schedule 1(simplified Customs declarations).

(7) HMRC Commissioners may by regulations make further provision aboutCustoms agents for the purposes of import duty.

(8) Each of the following is an example of the kind of provision that may be madeby the regulations—

(a) provision requiring persons to be eligible for appointment as Customsagents only if an HMRC officer has approved the appointment, and

(b) provision specifying the criteria for approving the appointment(including provision for the criteria to be specified in a public noticegiven by HMRC Commissioners).

22 Authorised economic operators

(1) HMRC Commissioners may by regulations make provision—(a) disapplying or simplifying specified requirements made by or under

this Part in relation to things required or authorised to be done byauthorised economic operators, or

(b) requiring HMRC to have regard to the status of a person as anauthorised economic operator when considering whether or not, orhow, to exercise any power or other function for the purposes of thisPart.

(2) For this purpose “authorised economic operators” means persons authorisedin accordance with provision made by or under the regulations.

(3) Regulations under this section may (for example)—(a) specify the criteria to be applied in determining whether or not any

person should be an authorised economic operator,(b) specify those criteria by reference to professional standards of

competence (as set by any specified person) or by reference to anythingelse (including the judgment of any person as to suitability),

(c) make provision for a person’s status as an authorised economicoperator to be subject to compliance with conditions specified in theregulations or in the authorisation, and

(d) establish different classes of authorised economic operator.

23 Approvals and authorisations granted under regulations

(1) This section applies in relation to approvals granted to any person underregulations made under this Part (whether in respect of premises or anythingelse) unless the regulations in question make alternative provision.

(2) In this section references to an approval include an authorisation.

(3) The regulations under which an approval is granted may—(a) require an application for approval to be made in a specified form and

in a specified manner and to contain specified information,(b) specify cases in which an application for approval may not be made,

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(c) require HMRC to consider, within a specified period, whether or not anapplication, or purported application, for approval is, as a result ofprovision made by paragraph (a) or (b), one that falls to be determined,

(d) confer on the applicant a right of appeal to an appeal tribunal in a casewhere HMRC have failed to comply with paragraph (c),

(e) require HMRC to notify a person making a purported application forapproval that, as a result of provision made by paragraph (a) or (b), thepurported application does not fall to be determined, and

(f) make further provision about the notification.

(4) The provision that may be made under subsection (3)(d) includes—(a) provision for an appeal to be brought only if a period specified in the

regulations has ended, and(b) provision limiting the power of an appeal tribunal to the power to

direct HMRC, in a case where it is satisfied that HMRC have actedunreasonably, to consider the application as mentioned in subsection(3)(c) within such further period as is specified by the tribunal.

(5) An approval granted by HMRC is treated as if it had never been granted if—(a) the (purported) application for approval was deficient in some respect,(b) the applicant knew, or ought reasonably to have known, of the

deficiency,(c) HMRC consider that the approval would not have been granted if the

deficiency was known at the time it was granted by the person grantingit, and

(d) HMRC give a notice to the applicant under this subsection notifying theapplicant of the effect of this subsection.

(6) Regulations made by HMRC Commissioners may make any provision thatthey consider appropriate for the purposes of subsection (5), includingprovision specifying cases in which the approval is to continue to be treated asstill in force.

(7) An approval may be amended, suspended or revoked in cases specified in theregulations under which it was granted.

(8) The amendment, suspension or revocation of an approval takes effect from thedate specified in a notice given by HMRC to the person approved (and,accordingly, does not affect anything already done by any person before thatdate in reliance on the approval).

(9) HMRC—(a) may not specify a date before the notice is given unless HMRC and the

person both agree that such a date may be given, and(b) may not specify a date that falls more than one year after the date on

which the notice is given.

(10) In this section “an appeal tribunal” has the same meaning as in Chapter 2 ofPart 1 of the Finance Act 1994 (see section 7).

24 Rulings as to application of customs tariff or place of origin

(1) HMRC Commissioners must by public notice make provision establishing asystem under which persons apply for rulings given by HMRC officers for thepurpose of—

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(a) determining any issue as to the code in the customs tariff applicable toany goods, or

(b) determining the place of origin of any goods for the purposes of thisPart.

(2) Each of the following is an example of the kind of provision that may be madeby the notice—

(a) provision specifying cases in which rulings need not be given,(b) provision about the making of the applications (including their form,

the information to be contained in them and any documents toaccompany them),

(c) provision requiring the applications to be determined within aspecified period,

(d) provision about the period for which, and other conditions subject towhich, the rulings are to have effect,

(e) provision about the form in which the rulings are to be given,(f) provision for the withdrawal or amendment of rulings,(g) provision determining the extent to which the rulings may be relied on

by applicants, and(h) provision requiring any person to whom a ruling has been given to

disclose that fact to HMRC.

(3) The system established by the notice must secure that an application may bemade for a ruling even if an HMRC officer considers that the ruling is not, ormay not be, required to resolve a doubt as to the issue being determined.

Supplementary

25 Disclosure of information

(1) HMRC (or anyone acting on their behalf) may disclose information relating toimport duty for customs duty purposes.

(2) In this section “customs duty purposes” means purposes in connection with, orotherwise incidental to, the imposition, enforcement or other regulation ofimport duty.

(3) A person who receives information as a result of this section may not furtherdisclose the information except with the consent of the HMRC Commissioners(which may be general or specific).

(4) A person who receives information as a result of this section may use theinformation only for customs duty purposes.

(5) If a person discloses information in contravention of subsection (3) whichrelates to a person whose identity—

(a) is specified in the disclosure, or(b) can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005 (offence ofwrongful disclosure) applies in relation to that disclosure as it applies inrelation to a disclosure in contravention of section 20(9) of that Act.

(6) This section does not limit the circumstances in which information may bedisclosed under section 18(2) of the Commissioners for Revenue and CustomsAct 2005 or under any other enactment or rule of law.

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(7) Nothing in this section authorises the making of a disclosure which—(a) contravenes the Data Protection Act 1998, or (b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the

Investigatory Powers Act 2016.

26 Co-operation with other customs services

(1) HMRC may cooperate with other customs services on matters of mutualconcern with a view to securing (by the exchange of information orotherwise)—

(a) the administration of the import duty system,(b) the prevention or detection of evasion or other fraud relating to import

duty, and(c) the prevention, reduction or elimination of avoidance of a liability to

import duty.

(2) Section 25(3) to (7) apply in relation to information disclosed as a result of thissection.

27 Fees for exercise of functions in connection with import duty

(1) The Treasury may by regulations authorise the charging of fees in respect ofthe exercise of any specified function of HMRC, or of an HMRC officer, for thepurposes of, or otherwise in connection with, import duty.

(2) The power may be exercised by the Treasury only if they consider that—(a) its exercise is consistent with arrangements between Her Majesty’s

government in the United Kingdom and any other government or anyinternational organisation or authority, and

(b) the circumstances in which the specified function is, or is likely to be,exercised are such that it is fair and reasonable for the charge to bemade.

28 Requirement to have regard to international obligations

(1) In exercising any function under any provision made by or under this Part—(a) the Treasury,(b) the Secretary of State,(c) HMRC, (d) the TRA, and(e) any other public body,

must have regard to international arrangements to which Her Majesty’sgovernment in the United Kingdom is a party that are relevant to the exerciseof the function.

(2) This section is not to be read as affecting the circumstances in which anyobligation to have regard to such matters would otherwise have arisen.

29 Consequential amendments

(1) Schedule 7 contains amendments consequential on the provision made by thisPart.

(2) The amendments made by that Schedule include amendments dealing with—

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(a) reviews or appeals of decisions in relation to import duty (see sections13A to 16 of, and Schedule 5 to, the Finance Act 1994), and

(b) penalties in relation to breaches of requirements in relation to importduty (see Part 3 of the Finance Act 2003).

30 General provision for the purposes of import duty

The Treasury may by regulations—(a) make provision supplementing provision made in relation to import

duty by or under this Part or any other enactment, or (b) make other provision generally for the purposes of import duty.

UK's customs union

31 Territories forming part of a customs union with UK

(1) This section applies if arrangements are entered into between—(a) Her Majesty’s government in the United Kingdom, and(b) the government of a country or territory outside the United Kingdom,

establishing a customs union between the United Kingdom and the country orterritory.

(2) Arrangements establish a “customs union” between the United Kingdom anda country or territory if—

(a) they provide that no duty is to be chargeable by reference tomovements of goods, or goods of a specified description, between theUnited Kingdom and the country or territory, and

(b) they provide for the same, or substantially the same, rules for chargingduty on imports of goods, or goods of a specified description, fromplaces outside the United Kingdom or the country or territory.

(3) For this purpose—“duty” means—

(a) import duty, or(b) any duty (however described) imposed by the law of the

country or territory that is of a similar character to import duty,and

“specified” means specified in the arrangements.

(4) If Her Majesty by Order in Council declares that it is expedient that thearrangements should have effect for the purposes of import duty, thearrangements have effect for those purposes despite any enactment.

(5) HMRC Commissioners may make regulations generally for carrying out anyarrangements having effect in accordance with this section.

(6) Among other things, the regulations may—(a) modify or disapply provision made by or under this Part or any other

Act,(b) treat anything done by the government of a country or territory as if

done by the appropriate authority or person in the United Kingdom,and

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(c) apply or replicate, with or without modifications, provision relating toduty under the law of a country or territory as that provision has effectfrom time to time.

(7) Examples of the kind of provision within subsection (6)(b) are—(a) provision treating an agreement entered into by a country or territory

as if it were entered into by Her Majesty’s government in the UnitedKingdom, and

(b) provision treating a system for determining the amount of dutyestablished under the law of a country or territory as if it were thecustoms tariff mentioned in section 8.

Regulations etc

32 Regulations etc

(1) Regulations under this Part are to be made by statutory instrument.

(2) A statutory instrument containing—(a) the first regulations under section 8, or(b) any other regulations under that section the effect of which is an

increase in the amount of import duty payable under the customs tariffin a standard case (within the meaning of that section),

must be laid before the House of Commons, and, unless approved by thatHouse before the end of the period of 28 days beginning with the date on whichthe instrument is made, ceases to have effect at the end of that period.

(3) The fact that a statutory instrument ceases to have effect as a result ofsubsection (2) does not affect—

(a) anything previously done under the instrument, or(b) the making of a new statutory instrument.

(4) In calculating the period for the purposes of subsection (2), no account is to betaken of any time—

(a) during which Parliament is dissolved or prorogued, or(b) during which the House of Commons is adjourned for more than 4

days.

(5) A statutory instrument containing regulations made under this Part other thanregulations to which subsection (2) applies is subject to annulment inpursuance of a resolution of the House of Commons.

(6) Any power to make regulations under this Part may be exercised—(a) either in relation to all cases to which the power extends, or in relation

to those cases subject to specified exceptions, or in relation to anyspecified case or description of case, or

(b) so as to make different provision for different purposes or areas.

(7) Any power to make regulations under this Part includes—(a) power conferring a discretion on any specified person to do anything

under, or for the purposes of, the regulations,(b) power to make provision by reference to things specified in a notice

published in accordance with the regulations,

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(c) power to make supplementary, incidental and consequential provision,and

(d) power to make transitional or transitory provision and savings.

(8) Any power to make regulations under any provision of this Part does notrestrict the width of any power to make subordinate legislation under—

(a) any other provision of this Part, or(b) CEMA 1979 or any other enactment.

(9) Subsections (6) to (8) apply in relation to any public notice under this Part; andany provision that may be made by a public notice under this Part may bemade by regulations.

(10) An Order under section 31—(a) is not to be submitted to Her Majesty in Council unless a draft of the

Order has been laid before, and approved by a resolution of, the Houseof Commons, and

(b) if it revokes an earlier Order under that section, may containtransitional or transitory provision and savings.

(11) After it is established, the Secretary of State must consult the TRA beforemaking regulations under Schedule 4 or 5.

(12) Any power of HMRC Commissioners to make regulations under this Part isexercisable concurrently by the Treasury.

Interpretation etc

33 Meaning of “domestic goods”

(1) Goods are domestic goods for the purposes of this Part if—(a) they are wholly obtained in the United Kingdom, or(b) they have been subject to a chargeable Customs procedure.

(2) For the purposes of this section goods have been “subject to a chargeableCustoms procedure” if—

(a) the goods were declared for the free-circulation procedure and theprocedure has been discharged, or

(b) the goods were declared for an authorised use procedure and theprocedure has been discharged.

(3) Goods cease to be domestic goods if—(a) they are exported from the United Kingdom, and(b) the export is one which is required to be made in accordance with the

applicable export provisions,and the goods are then chargeable goods until such time (if any) as they arenext subject to a chargeable Customs procedure.

(4) For the purposes of subsection (3), every export of goods is required to be madein accordance with the applicable export provisions unless an exceptionprovided for by regulations made by HMRC Commissioners applies to theexport.

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(5) HMRC Commissioners may by regulations make provision for goods exportedfrom the United Kingdom in accordance with the applicable export provisionsto retain their status as domestic goods if—

(a) the goods merely pass through places outside the United Kingdombefore arriving at their ultimate destination in the United Kingdom, or

(b) the goods otherwise remain outside the United Kingdom for atemporary period.

(6) The provision that may be made by the regulations includes—(a) provision requiring conditions to be met in relation to the goods while

they are outside the United Kingdom, and(b) provision requiring the making of a declaration in connection with

their subsequent import into the United Kingdom.

(7) Goods that are in the United Kingdom are presumed to be domestic goodsunless the contrary is shown.

(8) The Treasury may by regulations make provision—(a) as to cases in which goods are, or are not, to be regarded as domestic

goods for the purposes of this Part,(b) for reversing the presumption that goods are domestic goods in

specified cases (so that they are presumed not to be domestic goodsunless the contrary is shown), and

(c) as to the evidence which is to be required, or is to be sufficient, for thepurpose of showing that goods are domestic goods.

34 Presentation of goods to Customs on import or export

(1) For the purposes of this Part, goods are presented to Customs on import if—(a) the goods are lawfully imported into the United Kingdom, and(b) notification of their importation into the United Kingdom is given to

HMRC in accordance with provision made by regulations made byHMRC Commissioners.

(2) The time at which goods are presented to Customs on import is the later of—(a) the time at which the notification of importation in accordance with the

regulations is received by HMRC, and(b) the time at which the goods are imported into the United Kingdom.

(3) For the purposes of this Part, goods are presented to Customs on export ifnotification of their export from the United Kingdom is given to HMRC inaccordance with provision made by regulations made by HMRCCommissioners.

(4) The notification must be given before the export of goods unless provision ismade by regulations made by HMRC Commissioners authorising thenotification to be given at a later time.

(5) Regulations made by HMRC Commissioners may make provision for thepurposes of this section.

(6) Each of the following is an example of the kind of provision that may be madeby regulations under this section—

(a) provision requiring a notification to be accompanied by documents ofa description specified in the regulations or in a public notice given byHMRC Commissioners,

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(b) provision authorising a public notice given by HMRC Commissionersto make provision about the form and contents of a notification,

(c) provision authorising a public notice given by HMRC Commissionersto require notification to be made in accordance with provision madeby the notice,

(d) provision requiring or authorising, in specified cases, notification of animportation of goods to be given before the importation,

(e) provision deeming a notification to have been given in specified cases,and

(f) provision requiring a notification to disclose the location of the goods.

35 Exports made in accordance with applicable export provisions

(1) This section defines for the purposes of this Part what is meant by an export ofgoods from the United Kingdom being in accordance with the applicableexport provisions.

(2) The export of the goods is made in accordance with the applicable exportprovisions if—

(a) the goods are presented to Customs on export, and(b) the export is subsequently made in accordance with a procedure

provided for by regulations made by HMRC Commissioners.

(3) The regulations may—(a) provide for the procedure to involve the making of a declaration by the

person making the export or any specified person,(b) provide for requirements to be imposed on any person at any time

while the goods are subject to the procedure,(c) make provision specifying, or otherwise determining, the period

during which the goods are to be regarded as subject to the procedure,(d) deem, in specified cases, the export to have been made in accordance

with the procedure, and(e) provide for goods to be subject to the control of any HMRC officer from

a specified time.

(4) The provision which may be made as a result of subsection (3)(a) includesprovision applying or replicating the effect of—

(a) any provision made by or under Schedule 1 (Customs declarations), or(b) any other provision made by or under this Part that operates (to any

extent) by reference to a Customs declaration,with or without modifications.

36 Outward processing procedure

(1) This section applies if—(a) domestic goods have been presented to Customs on export, and(b) the goods are declared for an outward processing procedure.

(2) A declaration of goods for “an outward processing procedure” is adeclaration—

(a) that the goods are to be exported from the United Kingdom in order tobe processed outside the United Kingdom,

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(b) that the processing is to take place during a temporary period at the endof which the goods are to be imported into the United Kingdom, and

(c) that the processing is to be carried out in accordance with requirementsimposed on any person by or under regulations made by HMRCCommissioners.

(3) The temporary period during which the processing is to take place is the periodspecified in a notice given to the person making the declaration by an HMRCofficer.

(4) That period may be subsequently extended (or further extended) by anothernotice given as mentioned in subsection (3).

(5) If goods are declared for an outward processing procedure—(a) the export of the goods is not one which is required to be made in

accordance with the applicable export provisions, but(b) HMRC Commissioners may by regulations make provision in relation

to any export under an outward processing procedure correspondingto the provision that may be made by regulations under section 35.

(6) If the processing of the goods under an outward processing procedure consistsin their repair by any person without charge, the goods continue to be regardedas domestic goods but only if, while the procedure has effect—

(a) there is no breach of the terms of the declaration for the procedure, and(b) there is no breach of any other requirement in relation to the procedure.

(7) If the processing of the goods under an outward processing procedure consistsin anything else, the goods are to be regarded as chargeable goods, but if—

(a) the goods are imported in accordance with the procedure, and(b) there is no breach of the terms of the declaration for the procedure, or

of any other requirement in relation to the procedure, while theprocedure has effect,

the value of the goods is to be reduced to take account of so much of that valueas can be attributed to the goods as they stood before being exported.

(8) HMRC Commissioners may make regulations for the purposes of this section.

(9) Each of the following is an example of the kind of provision that may be madeby the regulations—

(a) provision specifying cases in which goods may not be declared for anoutward processing procedure,

(b) provision imposing requirements on any person in relation to anoutward processing procedure,

(c) provision for determining the reduction in the value of any goods forthe purposes of subsection (7),

(d) provision authorised or required to be made by any regulations underSchedule 2, and

(e) other provision made by or under this Part of this Act that has effect inrelation to a special Customs procedure.

37 Minor definitions

(1) In this Part—

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“approved guarantee”, in relation to goods declared for the free-circulation procedure, means any guarantee given in accordance withregulations made under paragraphs 6 and 7 of Schedule 6,

“arrangements” includes an understanding of any kind,“CEMA 1979” means the Customs and Excise Management Act 1979,“directions” means directions in electronic form or otherwise in writing,“guarantee” includes any indemnity, surety, security and undertaking of

any kind,“HMRC” means Her Majesty’s Revenue and Customs,“HMRC Commissioners” means the Commissioners for Her Majesty’s

Revenue and Customs,“HMRC officer” means an officer of Revenue and Customs,“notice”, except in the expression “public notice”, means a notice in

electronic form or otherwise in writing,“specified”, in relation to any regulations or public notice, means specified

in, or determined in accordance with, the regulations or public notice,“subordinate legislation” has the same meaning as in the Interpretation

Act 1978, and“the WTO” means the World Trade Organisation.

(2) In this Part any reference to a rate of duty includes a nil rate.

(3) In this Part any reference to goods being wholly obtained in any country orterritory includes—

(a) any case where the goods are grown, produced or manufactured onlyin the country or territory, and

(b) any other cases specified in regulations made by the Treasury.

(4) In this Part any reference to the processing of any goods includes the followingactivities—

(a) the erection, assembly, fitting or other working of the goods,(b) the repair of the goods,(c) the use of the goods for the purpose of facilitating the production or

manufacture of any other goods, and(d) the destruction of the goods.

(5) Any reference in any provision of this Part to a public notice is to a noticepublished by the Secretary of State, or (as the case may be) HMRCCommissioners, in such manner as the person giving the notice considersappropriate for the purposes of that provision.

(6) In this Part—(a) references to a territory outside the United Kingdom include the

European Union or any other international organisation or authoritycomprising territories outside the United Kingdom, and

(b) expressions relating to a territory outside the United Kingdom (such asthe government of a territory outside the United Kingdom or the law ofa territory outside the United Kingdom) are to be read accordingly withthe necessary modifications.

(7) For the purposes of this Part any reference to goods being subject to the controlof an HMRC officer includes control being exercised by—

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(a) requiring the goods to be handled, or otherwise dealt with, inaccordance with instructions given by an HMRC officer (whether givenorally or in any other way), or

(b) requiring the goods to be kept in any place specified by an HMRCofficer.

(8) In the case of any reference in this Part to a person who makes a Customsdeclaration—

(a) the reference is to the person actually making the declaration even if thedeclaration is made on behalf of another person, and

(b) if a Customs declaration is made by a Customs agent in the name of theprincipal, the reference is to the agent despite the provision made bysection 21(3).

38 Table of definitions

The following table sets out some of the expressions used in this Part, showingwhere they are defined or otherwise explained—

acceptance (of a Customs declaration) paragraphs 11(2) and 13(4)of Schedule 1

the applicable export provisions section 35

approved guarantee (in relation to goodsdeclared for the free-circulation procedure)

section 37(1)

arrangements section 37(1)

an authorised use procedure paragraph 13 of Schedule 2

CEMA 1979 section 37(1)

chargeable goods section 2

control of HMRC officer section 37(7)

Customs agent section 21

Customs procedures section 3

customs tariff section 8

directions section 37(1)

domestic goods section 33

export (time of) section 5 of CEMA 1979

the free-circulation procedure section 3

guarantee section 37(1)

HMRC section 37(1)

HMRC Commissioners section 37(1)

HMRC officer section 37(1)

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PART 2

EXPORT DUTY

39 Charge to export duty

(1) The Treasury may by regulations make provision for, and in connection with,the charging of a duty of customs (to be known as “export duty”) by referenceto the export of goods from the United Kingdom.

(2) The regulations may provide for export duty to be chargeable by reference tothe export of —

(a) all goods, or

import (time of) section 5 of CEMA 1979

import duty section 1

an inward processing procedure paragraphs 9 and 11 ofSchedule 2

notice (except in the expression “public notice”) section 37(1)

origin (of goods) section 17

person making a Customs declaration section 37(8)

presented to Customs on export section 34(3)

presented to Customs on import section 34(1) and (2)

processing (of goods) section 37(4)

public notice section 37(5)

rate of duty section 37(2)

special Customs procedure section 3

specified (in relation to regulations or publicnotices)

section 37(1)

a storage procedure paragraph 2 of Schedule 2

subordinate legislation section 37(1)

a temporary admission procedure paragraph 15 of Schedule 2

territory outside the United Kingdom (andrelated expressions)

section 37(6)

the TRA section 13

a transit procedure paragraph 5 of Schedule 2

value (of chargeable goods) section 16

wholly obtained (in the case of goods) section 37(3)

the WTO section 37(1)

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Taxation (Cross-border Trade) BillPart 2 — Export duty

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(b) goods of a description specified in the regulations.

(3) The regulations—(a) may provide for export duty to be chargeable in accordance with a tariff

specified in the regulations (“the export tariff”),(b) may provide for export duty to be chargeable by reference to value,

weight or volume or other measure of quantity or size, and(c) may provide for the value of the goods and the other matters

mentioned in paragraph (b) to be determined in accordance with theregulations.

(4) In considering whether to impose export duty, and, if so, the rate of duty thatought to apply to any goods, the Treasury must have regard to—

(a) the interests of consumers in the United Kingdom,(b) the desirability of maintaining and promoting the external trade of the

United Kingdom,(c) the desirability of maintaining and promoting productivity in the

United Kingdom, and(d) the extent to which the goods concerned are subject to competition.

(5) In considering whether to impose export duty, and, if so, the rate of duty thatought to apply to any goods, the Treasury must also have regard to anyrecommendation about the rate made to them by the Secretary of State.

(6) In considering what recommendation to make, the Secretary of State must haveregard to the matters set out in subsection (4)(a) to (d).

(7) The provision that may be made by regulations under this section includesprovision replicating or applying, with or without modifications, anyprovision made by or under—

(a) Part 1, or(b) any other enactment relating to import duty.

(8) Paragraph 1 of Schedule 7 (replacement of EU customs duties) applies inrelation to this Part as it applies in relation to Part 1 (reading any reference toimport duty as a reference to export duty).

(9) In this section “specified” means specified in, or determined in accordancewith, the regulations.

40 Regulations under section 39: supplementary

(1) Regulations under section 39 are to be made by statutory instrument.

(2) A statutory instrument containing—(a) the first regulations under that section, or(b) any other regulations under that section the effect of which is an

increase in the amount of export duty payable,must be laid before the House of Commons, and, unless approved by thatHouse before the end of the period of 28 days beginning with the date on whichthe instrument is made, ceases to have effect at the end of that period.

(3) The fact that a statutory instrument ceases to have effect as a result ofsubsection (2) does not affect—


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days.

(5) A statutory instrument containing regulations under section 39 other thanregulations to which subsection (2) applies is subject to annulment inpursuance of a resolution of the House of Commons.

(6) Any power to make regulations under section 39 may be exercised—(a) either in relation to all cases to which the power extends, or in relation

to those cases subject to specified exceptions, or in relation to anyspecified case or description of case, or


(7) Any power to make regulations under section 39 includes—(a) power conferring a discretion on any specified person to do anything


published in accordance with the regulations,(c) power to make supplementary, incidental and consequential provision,

and(d) power to make transitional or transitory provision and savings.

PART 3

VALUE ADDED TAX

41 Abolition of acquisition VAT and extension of import VAT

(1) The Value Added Tax Act 1994 is amended as follows.

(2) In section 1 (imposition of charge to value added tax), in subsection (1)—(a) omit paragraph (b) (which charges VAT on the acquisition in the

United Kingdom of goods from other member States), and(b) for paragraph (c) substitute—

“(c) on the importation of goods into the United Kingdom,”.

(3) For section 15 substitute—

“15 Meaning of “importation of goods” into the United Kingdom

(1) This section determines for the purposes of this Act when, and bywhom, goods are imported into the United Kingdom.

(2) Goods are imported when they are declared for a Customs procedureunder Part 1 of TCTA 2018.

(3) But—(a) in the case of goods declared under TCTA 2018 for a storage

procedure, a transit procedure or an inward processingprocedure, the goods are imported when a liability to importduty is, or on the relevant assumptions would be, incurred inrespect of them under section 4 of that Act, and

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(b) in the case of goods which are liable to forfeiture as a result ofsection 5(1) of, or paragraph 1(5) or 3(4) of Schedule 1 to, thatAct (goods not presented to Customs or Customs declarationnot made), the goods are imported when they become liable toforfeiture as a result of those provisions.

(4) Each person who is, or on the relevant assumptions would be, liable toimport duty in respect of goods imported into the United Kingdom is aperson who has imported the goods.

(5) For the purposes of this section “the relevant assumptions” are—(a) an assumption that a liability to import duty at a nil rate is

replaced by a liability to import duty at a higher rate, and(b) an assumption that no relief from import duty is available.

(6) If two or more persons are regarded as importing goods, those personsare jointly and severally liable to any VAT that is payable on theimportation.

(7) The preceding provisions of this section are to be ignored in readingany reference to importation or to an importer in anything applied forthe purposes of this Act by section 16(1) or (2).

(8) But subsection (7) does not apply so far as the context otherwiserequires or provision to the contrary is contained in regulations undersection 16(3).”

42 EU law relating to VAT

(1) Any EU regulation so far as applying in relation to value added tax, and anydirect EU legislation so far as relevant to any such regulation, that form part ofthe law of the United Kingdom as a result of section 3 of the European Union(Withdrawal) Act 2018 cease to have effect (but, in the case of the implementingVAT regulation, see also subsection (5)).

(2) In the application of section 4(1) of that Act (saving for EU rights, powers,liabilities, obligations, restrictions, remedies and procedures) in relation tovalue added tax, the rights, powers, liabilities, obligations, restrictions,remedies and procedures mentioned there are subject to any exclusions orother modifications made by regulations made by the Treasury by statutoryinstrument.

(3) Further provision relevant to the law relating to value added tax is made by theEuropean Union (Withdrawal) Act 2018: see, for example, section 6 of that Act(interpretation of retained EU law).

(4) One of the consequences of the provision made by that Act is that the principleof EU law preventing the abuse of the VAT system (see, for example, the casesof Halifax and Kittel) continues to be relevant, in accordance with that Act, forthe purposes of the law relating to value added tax.

(5) Where the principal VAT directive remains relevant for determining themeaning and effect of the law relating to value added tax, that directive is to beread for that purpose in the light of the provision made by the implementingVAT regulation but ignoring such of its provisions as are excluded byregulations made by the Treasury by statutory instrument.

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(6) A statutory instrument containing regulations under this section is subject toannulment in pursuance of a resolution of the House of Commons.

(7) Regulations under this section—(a) may make different provision for different purposes or areas,(b) may contain supplementary, incidental and consequential provision,

and(c) may contain transitional or transitory provision and savings.

(8) In this section—“the implementing VAT regulation” means the Implementing Regulation

(EU) No 282/2011, and“the principal VAT directive” means Council Directive 2006/112/EC on

the common system of value added tax.

43 Other VAT amendments connected with withdrawal from EU

Schedule 8 makes amendments of the Value Added Tax Act 1994, and otherenactments relating to VAT, in consequence of the provision made by this Partor otherwise in connection with the withdrawal of the United Kingdom fromthe EU.

PART 4

EXCISE DUTIES

44 Excise duties: postal packets sent from overseas

(1) HMRC Commissioners may by regulations impose a liability to excise duty ona person outside the United Kingdom in respect of the entry of goods into theUnited Kingdom, if the person sent, or arranged for the sending of, the goodsto their recipient in a postal packet.

(2) The regulations may—(a) provide that the liability of the sender of the goods to excise duty arises

only in relation to goods of a value described in the regulations,(b) provide that, in cases specified in the regulations, other persons are

jointly and severally liable for the excise duty, and(c) provide that persons who would otherwise be liable to the excise duty

are not so liable.

(3) Among other provision that may be made by the regulations, the regulationsmay make provision—

(a) requiring persons to register with HMRC Commissioners under theregulations for the purpose of accounting for excise duty,

(b) requiring persons to provide information to HMRC Commissionersabout the goods or the person who sent, or arranged for the sending of,them,

(c) about penalties for failure to comply with the regulations, and(d) modifying the application of provision made by or under the customs

and excise Acts in relation to cases dealt with by the regulations.

(4) In this section—

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“the customs and excise Acts” has the same meaning as in the Customsand Excise Management Act 1979, and

“postal packet” has the meaning given by the Postal Services Act 2000.

45 General regulation making power for excise duty purposes etc

(1) HMRC Commissioners may make regulations generally for excise dutypurposes or for the purposes of an excise duty specified in the regulations.

(2) Among other things, the regulations may make provision about—(a) duty points (and connected provision such as the calculation and

payment of the duty and the person liable for the duty),(b) the holding and movement of goods,(c) warehousing of goods or stores,(d) drawback, rebate, relief, exemption, reimbursement or remission of or

from excise duty,(e) the descriptions of goods on which excise duty is chargeable,(f) approvals or registrations of persons or premises,(g) the production of goods and other processes relating to goods,(h) the stamping or marking of goods, (i) restrictions on the use of goods,(j) record keeping (including electronic record keeping) and provision of

information or documents (including electronic provision), and(k) any arrangements that have effect as a result of section 31 (territories

forming part of a customs union with UK).

(3) The power to make regulations under this section may (among other things) beexercised by amending or repealing any Act of Parliament (whenever passed).

(4) In this section “approvals” includes authorisations and licences.

46 Exercise of information powers in connection with excise duty

(1) HMRC Commissioners may make regulations imposing obligations onrevenue traders for the purpose of giving effect to international excisearrangements.

(2) The regulations may require the submission to HMRC Commissioners byrevenue traders of statements containing such particulars of—

(a) relevant business matters in which the revenue traders are concerned,and

(b) the persons concerned in those matters,as may be specified in the regulations.

(3) The regulations may provide for statements about relevant business matters tobe submitted at such times and intervals, in such cases and in such form andmanner as may be specified—

(a) in the regulations, or(b) by HMRC Commissioners in accordance with the regulations.

(4) For the purposes of this section, each of the following is a “relevant businessmatter” in relation to a revenue trader —

(a) any goods or services supplied by or to the revenue trader in the courseor furtherance of a business,

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(b) any goods in the importation or exportation of which the revenuetrader is concerned in the course or furtherance of a business, or

(c) any transaction or activity made or taking place in the course orfurtherance of a business,

so far as information about the goods, services, transaction or activity could berelevant to any international excise arrangements.

(5) If any international excise arrangements have effect, any power of an officer ofRevenue and Customs to obtain information or documents under anyenactment (or instrument made under any enactment) relating to excise dutyis exercisable in relation to matters which are relevant to those arrangements.

(6) HMRC Commissioners may disclose information which is obtained as a resultof subsection (5) (and no obligation of secrecy, whether imposed by statute orotherwise, prevents the disclosure) if—

(a) the disclosure is required in accordance with the international excisearrangements, and

(b) HMRC Commissioners are satisfied that the recipient is bound, or hasundertaken, both to observe rules of confidentiality which are no lessstrict than those applying to the information in the United Kingdomand to use the information only for the purposes contemplated by thearrangements.

(7) Powers are exercisable as a result of subsection (5) only if HMRCCommissioners have given (and not withdrawn) a direction in writingauthorising their use (either generally or in relation to specified cases).

(8) HMRC Commissioners may not make regulations under this section, or give adirection under subsection (7), unless they consider that making theregulations or giving the direction would facilitate the administration,collection or enforcement of any excise duty.

(9) In this section—“international excise arrangements” means arrangements which—

(a) have effect by virtue of an Order in Council under section 173 ofthe Finance Act 2006, and

(b) relate to any excise duty or any duty corresponding to exciseduty imposed under the law of the territory, or any of theterritories, in relation to which the arrangements have beenmade, and

“revenue trader” has the meaning given by section 1(1) of the Customsand Excise Management Act 1979.

47 EU law relating to excise duty

(1) Any EU regulation so far as applying in relation to excise duty, and any directEU legislation so far as relevant to any such regulation, that form part of thelaw of the United Kingdom as a result of section 3 of the European Union(Withdrawal) Act 2018 cease to have effect.

(2) In the application of section 4(1) of that Act (saving for EU rights, powers,liabilities, obligations, restrictions, remedies and procedures) in relation to anyexcise duty, the rights, powers, liabilities, obligations, restrictions, remediesand procedures mentioned there are subject to any exclusions or othermodifications made by regulations made by the Treasury.

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(3) Further provision relevant to the law relating to excise duty is made by theEuropean Union (Withdrawal) Act 2018: see, for example, section 6 of that Act(interpretation of retained EU law).

(4) Nothing in this section is to be read as restricting the power conferred bysection 45 (which could, for example, be exercised so as to replicate or apply,with or without modifications, any EU regulation or legislation mentioned insubsection (1)).

48 Regulations under ss. 44 to 47

(1) Regulations under any of sections 44 to 47 are to be made by statutoryinstrument.

(2) A statutory instrument containing regulations under section 45 that makesprovision within subsection (3) of this section must be laid before the House ofCommons, and, unless approved by that House before the end of the period of28 days beginning with the date on which the instrument is made, ceases tohave effect at the end of that period

(3) The provision is within this subsection if it—(a) amends or repeals any Act of Parliament,(b) restricts any rebate of or relief from excise duty,(c) extends the descriptions of goods on which excise duty is chargeable, or(d) extends the cases in which stamping or marking of goods is required.

(4) The fact that a statutory instrument ceases to have effect as mentioned insubsection (2) does not affect—




days.

(6) A statutory instrument containing regulations under any of sections 44 to 47other than one to which subsection (2) applies is subject to annulment inpursuance of a resolution of the House of Commons.

(7) If—(a) a statutory instrument contains provision under any of sections 44 to 47

and provision relating to excise duty under another enactment, and(b) the Parliamentary procedure applicable to a statutory instrument

containing provision under the other enactment does not requireHouse of Commons approval,

the only Parliamentary procedure that is to apply to the instrument mentionedin paragraph (a) is that given by this section.

(8) For the purposes of subsection (7) the Parliamentary procedure applicable to astatutory instrument requires House of Commons approval if, as a conditionof its continuing to have effect or its making, the House of Commons has toapprove the statutory instrument or a draft of it.

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(9) The power to make regulations under any of sections 44 to 47 does not restrictthe width of any power to make legislation under any other enactment relatingto excise duty.

(10) Any power to make regulations under any of sections 44 to 47 may beexercised—

(a) either in relation to all cases to which the power extends, or in relationto those cases subject to specified exceptions, or in relation to anyspecified case or description of case, or


(11) Any power to make regulations under any of sections 44 to 47 includes—(a) power conferring a discretion on any specified person to do anything


published in accordance with the regulations,(c) power to make supplementary, incidental and consequential provision,

and(d) power to make transitional or transitory provision and savings.

49 Sections 44 to 48: interpretation

In sections 44 to 48—“excise duty” means any excise duty under—

(a) the Alcoholic Liquor Duties Act 1979,(b) the Hydrocarbon Oil Duties Act 1979, or(c) the Tobacco Products Duty Act 1979, and

“HMRC Commissioners” means the Commissioners for Her Majesty’sRevenue and Customs.

50 Excise duty amendments connected with withdrawal from EU

Schedule 9 makes amendments of enactments relating to excise duty inconsequence of the provision made by this Part or otherwise in connectionwith the withdrawal of the United Kingdom from the EU (including someamendments also relating to duties of customs).

PART 5

OTHER PROVISION CONNECTED WITH WITHDRAWAL FROM EU

51 Power to make provision in relation to VAT or duties of customs or excise

(1) The appropriate Minister may by regulations made by statutory instrumentmake such provision relating to—

(a) value added tax,(b) any duty of customs, or(c) any excise duty,

as the appropriate Minister considers appropriate in consequence of, orotherwise in connection with, the withdrawal of the United Kingdom from theEU.

(2) Regulations under this section—

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(a) may make any such provision as might be made by Act of Parliament,including provision amending or repealing this Act, but

(b) may not make provision taking effect from a date earlier than that of themaking of the regulations.

(3) In this section “the appropriate Minister” means—(a) in any case where the provision relates to anything dealt with by any

provision mentioned in section 55(2), the Secretary of State or theTreasury, and

(b) in any other case, the Treasury.

(4) A statutory instrument containing regulations under this section that amendsor repeals any Act of Parliament must be laid before the House of Commons,and, unless approved by that House before the end of the period of 28 daysbeginning with the date on which the instrument is made, ceases to have effectat the end of that period.





days.

(7) A statutory instrument containing regulations under this section to whichsubsection (4) does not apply is subject to annulment in pursuance of aresolution of the House of Commons.

(8) If—(a) a statutory instrument contains provision relating to excise duty under

this section and provision relating to excise duty under anotherenactment, and

(b) the Parliamentary procedure applicable to a statutory instrumentcontaining provision under the other enactment does not requireHouse of Commons approval (within the meaning of section 48(7)),


(9) After it is established, the appropriate Minister must consult the TradeRemedies Authority before including in regulations under this sectionprovision relating to anything dealt with by Schedule 4 or 5.

52 Subordinate legislation relating to VAT or duties of customs or excise

(1) In this section “relevant subordinate legislation” means any subordinatelegislation within the meaning of the Interpretation Act 1978 made under—

(a) this Act, or(b) any other enactment relating to value added tax, any duty of customs

or any excise duty.

(2) If the person making any relevant subordinate legislation considers it isappropriate to do so in consequence of, or otherwise in connection with, the

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withdrawal of the United Kingdom from the EU, the legislation may providefor it, or any of its provisions, to come into force on such day as the Treasurymay by regulations under this section appoint.

(3) In the case of relevant subordinate legislation subject to the 28-day affirmativeprocedure containing provision as a result of subsection (2)—

(a) any reference in the enactment dealing with that procedure to the dateon which the legislation (or statutory instrument containing it) wasmade is to be read as a reference to the first day on which any provisionof the legislation comes into force for any purpose as a result ofsubsection (2), and

(b) any reference in the enactment dealing with that procedure to a periodof 28 days is to be read as a reference to a period of 60 days.

(4) For this purpose subordinate legislation is “subject to the 28-day affirmativeprocedure” if provision is made for it to cease to have effect unless approvedby a resolution of the House of Commons before the end of a period of 28 days.

(5) Any power to make relevant subordinate legislation (or to do anything underit) includes—

(a) power to make supplementary, incidental or consequential provision,and

(b) power to make transitional or transitory provision or savings,if the person exercising the power considers it appropriate to make theprovision concerned in consequence of, or otherwise in connection with, thewithdrawal of the United Kingdom from the EU.

(6) Any power of the Treasury to appoint a day under this section includes—(a) a power to appoint different days for different purposes or areas,(b) a power to appoint a time on a day if they consider it appropriate to do

so (including a time that has effect by reference to the coming into forceof any other enactment), and

(c) a power to revoke provision made by relevant subordinate legislationso far as the provision was an alternative to provision coming into forceas a result of subsection (2).

(7) Regulations under this section are to be made by statutory instrument.

(8) Nothing in this section is to be read as having any bearing on whether or not,in the absence of this section, the matters it authorises would otherwise havebeen authorised.

53 Meaning of “excise duty”

In this Part “excise duty” means any excise duty under—(a) the Alcoholic Liquor Duties Act 1979,(b) the Hydrocarbon Oil Duties Act 1979, or(c) the Tobacco Products Duty Act 1979.

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PART 6

FINAL PROVISIONS

54 Consequential and transitional provision

(1) The appropriate Minister may by regulations made by statutory instrumentmake such provision as the appropriate Minister considers appropriate inconsequence of this Act.

(2) The power to make regulations under subsection (1) may (among other things)be exercised by amending or repealing any Act of Parliament other than thisAct or one passed after the end of the Session in which this Act is passed.

(3) The power to make regulations under subsection (1) includes power to maketransitional or transitory provision and savings.

(4) The appropriate Minister may by regulations made by statutory instrumentmake such transitional, transitory or saving provision as the appropriateMinister considers appropriate in connection with the coming into force of anyprovision of this Act.

(5) In this section “the appropriate Minister” means—(a) in any case where the provision relates to any provision mentioned in

section 55(2), the Secretary of State or the Treasury, and(b) in any other case, the Treasury.

(6) Any power to make regulations under this section may be exercised so as tomake different provision for different purposes or areas.

(7) Any power to make regulations under this section includes—(a) power conferring a discretion on any specified person to do anything


published in accordance with the regulations, and(c) power to make supplementary, incidental and consequential provision.

(8) A statutory instrument containing regulations under subsection (1) thatamends or repeals any Act of Parliament must be laid before the House ofCommons, and, unless approved by that House before the end of the period of28 days beginning with the date on which the instrument is made, ceases tohave effect at the end of that period.





days.

(11) A statutory instrument containing regulations under subsection (1) to whichsubsection (8) does not apply is subject to annulment in pursuance of aresolution of the House of Commons.

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(12) If—(a) a statutory instrument contains provision relating to excise duty under

subsection (1) and provision relating to excise duty under anotherenactment (and “excise duty” has the same meaning in this paragraphas in Part 5), and

(b) the Parliamentary procedure applicable to a statutory instrumentcontaining provision under the other enactment does not requireHouse of Commons approval (within the meaning of section 48(7)),


(13) After it is established, the appropriate Minister must consult the TradeRemedies Authority before including in regulations under this sectionprovision relating to Schedule 4 or 5.

55 Commencement

(1) The following provisions come into force on the day on which this Act ispassed—

(a) Part 1 (other than the provisions mentioned in subsection (2)) so far asmaking provision for anything to be done by regulations or publicnotice,

(b) Part 2,(c) sections 44 to 46 and sections 48 and 49,(d) Part 5, and(e) this Part.

(2) The following provisions come into force on such day as the Secretary of Statemay by regulations under this section appoint—

(a) section 10 and Schedule 3 (import duty: preferential rates givenunilaterally),

(b) section 13 and Schedules 4 and 5 (import duty: dumping of goods,foreign subsidies, etc),

(c) section 15 (import duty: international disputes etc), and(d) paragraph 1 of Schedule 7 (replacement of EU customs duties) so far as

relating to EU trade duties.

(3) The remaining provisions of this Act come into force on such day as theTreasury may by regulations under this section appoint.

(4) Any power of the Treasury or Secretary of State to appoint a day under thissection includes—

(a) a power to appoint different days for different purposes or areas, and(b) a power to appoint a time on a day if the person exercising the power

considers it appropriate to do so (including a time that has effect byreference to the coming into force of any other enactment).

(5) Regulations under this section are to be made by statutory instrument.

56 Short title

This Act may be cited as the Taxation (Cross-border Trade) Act 2018.

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S C H E D U L E S

SCHEDULE 1 Section 3(5)

CUSTOMS DECLARATIONS

Presentation of goods to Customs and period for making Customs declaration etc

1 (1) Goods must be presented to Customs on import and a Customs declarationin respect of the goods must be made before the end of the period of 90 daysbeginning with the day on which the goods are so presented.

(2) The goods are subject to the control of any HMRC officer as soon as they areimported into the United Kingdom.

(3) The control that may be exercised by the officer includes, in particular,requiring the goods to be moved to, and stored in, any place approved as atemporary storage facility under section 25 or 25A of CEMA 1979.

(4) The obligation to make a Customs declaration in respect of any goods isextinguished if—

(a) the goods are exported from the United Kingdom before the 90 dayperiod ends, and

(b) the export is made in accordance with the applicable exportprovisions.

(5) If the obligation to make a Customs declaration still falls to be complied withwhen the 90 day period ends, the goods—

(a) are then liable to forfeiture (see Part 11 of CEMA 1979), and(b) cease to be subject to sub-paragraph (2).

(6) The provision made by this paragraph is subject to paragraph 3.

(7) HMRC Commissioners may by regulations make further provision for thepurposes of this paragraph.

(8) Among other things, the regulations may make—(a) provision for cases in which goods are not required to be presented

to Customs on import,(b) provision about the person who must present goods to Customs on

import,(c) provision requiring the making of a separate declaration in respect of

the storage of goods subject to sub-paragraph (2), and(d) provision restricting the extent to which goods subject to that sub-

paragraph may generally be handled, or otherwise dealt with, byany person.

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Eligibility of persons to make Customs declarations

2 (1) A person may make a Customs declaration in respect of any chargeablegoods if—

(a) the person is able to present the goods to Customs on import, or(b) the person is able to secure that the goods are presented to Customs

on import.

(2) HMRC Commissioners may by regulations provide that, in addition tomeeting the requirements of sub-paragraph (1), persons may make Customsdeclarations only if—

(a) they are established in the United Kingdom or a specified placeoutside the United Kingdom,

(b) they otherwise have a specified connection to the United Kingdom orto a specified place outside the United Kingdom, or

(c) they meet any other specified conditions.

Time at which Customs declarations required or authorised to be made

3 (1) HMRC Commissioners may by regulations make provision requiring, inspecified cases, a Customs declaration to be made in respect of any goodsbefore they are imported into the United Kingdom.

(2) A Customs declaration may be made in other cases in respect of any goodsbefore they are imported into the United Kingdom, but the declaration istreated as withdrawn if the goods are not presented to Customs on importwithin the permitted period.

(3) For this purpose “the permitted period” means—(a) the period of 30 days beginning with the day on which the

declaration is made, or(b) such longer or shorter period as may be specified in a public notice

given by HMRC Commissioners.

(4) If—(a) a Customs declaration is required to be made in respect of any goods

before they are imported into the United Kingdom, and(b) the requirement to make the declaration still falls to be complied

with when the goods are imported,the goods are liable to forfeiture at the time of importation.

(5) HMRC Commissioners may make regulations for the purposes of thisparagraph.

(6) Each of the following is an example of the kind of provision that may bemade by the regulations—

(a) provision requiring a person in possession or control of any goods tohave evidence of the making of a Customs declaration and toproduce (on request) the evidence to an HMRC officer,

(b) provision for the evidence mentioned in paragraph (a) to be of a type,and in a form, specified in the regulations or in a public notice givenby HMRC Commissioners,

(c) provision requiring, after a Customs declaration is made in respectof any goods, the giving of a notification in respect of the goods toHMRC in accordance with the regulations, and

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(d) provision treating, in specified cases, a requirement to make aCustoms declaration before the time at which any goods areimported as if it had been met if a Customs declaration is made at alater time in accordance with the regulations.

Form of Customs declarations and how they are made

4 The general rule is that a Customs declaration—(a) must be made in an electronic form specified in a public notice given

by HMRC Commissioners, and(b) must be submitted or otherwise made available to HMRC

electronically in accordance with provision made by a public noticegiven by HMRC Commissioners.

5 (1) In cases specified in a public notice given by HMRC Commissioners, aCustoms declaration may be made in writing (otherwise than in electronicform) in a form specified in the notice.

(2) In those cases, the declaration must be submitted or otherwise madeavailable to HMRC in accordance with provision made by a public noticegiven by HMRC Commissioners.

6 (1) In cases specified in a public notice given by HMRC Commissioners, aCustoms declaration—

(a) may be made orally, or(b) may be made by conduct.

(2) HMRC Commissioners may by regulations make provision for altering orsupplementing the operation of the customs duty provisions in any casewhere a Customs declaration is made orally or by conduct.

(3) Among other things, the regulations may include provision—(a) disapplying any requirement under the customs duty provisions,(b) treating anything done, or omitted to be done, as meeting any

condition imposed under the customs duty provisions,(c) restricting or excluding the exercise of a power conferred under the

customs duty provisions, or(d) requiring any person to provide documents or information to

HMRC.

(4) In this paragraph “the customs duty provisions” means any provision madeby or under—

(a) this Part, or(b) CEMA 1979, or any other enactment, so for as relating to any duty of

customs.

Contents of Customs declarations

7 (1) A Customs declaration in respect of any goods—(a) must, in addition to specifying the Customs procedure for which the

goods are declared, contain information of a description specified ina public notice given by HMRC Commissioners,

(b) must be accompanied by such documents of a description specifiedin a public notice given by HMRC Commissioners, and

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(c) must include a declaration by the person making it that thedeclaration is, to the best of the person’s knowledge, correct andcomplete.

(2) In cases specified in a public notice given by HMRC Commissioners, therequirement under sub-paragraph (1)(b) may be met by the person who hasmade the declaration or any other person—

(a) making the documents available for inspection by an HMRC officer,or

(b) making available to HMRC information of a description specified inthe notice (whether electronically or otherwise).

(3) In cases specified in a public notice given by HMRC Commissioners, thedocuments required to accompany a Customs declaration may be requiredto be submitted or otherwise made available to HMRC before the making ofthe declaration.

(4) References in this Schedule to documents accompanying a Customsdeclaration are to be read in accordance with sub-paragraphs (2) and (3).

8 A public notice given by HMRC Commissioners—(a) may make provision, in specified cases, for a single Customs

declaration to cover a number of different goods, including goods ofdifferent descriptions, and

(b) may make provision, in specified cases, requiring separate Customsdeclarations to be made in respect of goods of the same description.

Simplified Customs declarations etc

9 (1) HMRC Commissioners may by regulations make provision disapplying orsimplifying the requirements made by or under this Part in relation to themaking of Customs declarations.

(2) Each of the following is an example of the kind of provision that may bemade by the regulations—

(a) provision entitling only authorised persons to make use of theregulations or specified provisions of the regulations,

(b) provision requiring the giving of a guarantee, in accordance with theregulations, in respect of any liability to import duty before aCustoms declaration is made,

(c) provision for the making of a simplified Customs declaration(subject to any conditions that may be imposed by the regulations asto the subsequent provision of further information or documents),

(d) provision for a single rate of import duty to apply to goods ofdifferent descriptions comprised in a particular consignment (usingthe highest rate otherwise applicable to any of the goods),

(e) provision for the amount of import duty in respect of goods ofdifferent descriptions comprised in a particular consignment to becalculated by reference to the same matter,

(f) provision for treating a Customs declaration in respect of goods asbeing made if a person makes an entry in respect of the goods in asystem for recording information where the system is approved byHMRC and the information is made available to HMRC,

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(g) provision disapplying any requirement made by or under this Partin cases where a Customs declaration is treated as made as a result ofparagraph (f), and

(h) provision for the making of a Customs declaration in respect ofgoods imported during a specified period (instead of separateCustoms declarations being required in respect of each importation).

(3) In sub-paragraph (2)(a) “authorised persons” means persons authorised inaccordance with provision made by or under the regulations.

Acceptance of Customs declarations

10 As soon as practicable after receiving a Customs declaration, HMRC mustdetermine—

(a) whether or not the declaration has been made, and has been madeavailable to HMRC, in accordance with the provision made by orunder paragraphs 1 to 6, and

(b) whether or not the declaration is complete.

11 (1) If HMRC are satisfied that—(a) the goods have been presented to Customs on import,(b) a Customs declaration has been made in respect of the goods, and

has been made available to HMRC, in accordance with the provisionmade by or under paragraphs 1 to 6, and

(c) the declaration is complete,HMRC must notify the person making the declaration that HMRC are sosatisfied.

(2) A notification under sub-paragraph (1) constitutes the acceptance of thedeclaration by HMRC for the purposes of this Part.

(3) This does not prevent the subsequent exercise of a power to verify thedeclaration under paragraph 13.

(4) That paragraph also provides for another way in which a declaration isaccepted by HMRC for the purposes of this Part.

12 For the purposes of this Schedule a Customs declaration is regarded ascomplete only if—

(a) all the information required to be included in the declaration isincluded (in the appropriate places in the declaration), and

(b) all the documents required to accompany the declaration doaccompany it,

whether or not there are any inaccuracies in the information contained in thedeclaration or documents.

Verification of Customs declarations

13 (1) An HMRC officer may verify a Customs declaration by taking any of thefollowing steps—

(a) steps to establish the entitlement of a person to make a Customsdeclaration and generally to determine whether the conditions formaking the declaration are met, and

(b) steps to establish the accuracy of a Customs declaration or anydocument required to accompany it.

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(2) An HMRC officer may take any of the steps in sub-paragraph (1) before orafter, or at the same time as, accepting the declaration.

(3) If an HMRC officer takes any of those steps before a Customs declaration isaccepted, the officer—

(a) may notify the person making the declaration that the declaration isto be treated for the purposes of this Part as if it had been acceptedby HMRC (whether or not it would have been accepted underparagraph 11(2)), and

(b) may make any amendments of the declaration that the officerconsiders are appropriate.

(4) A notification under sub-paragraph (3) constitutes the acceptance of thedeclaration by HMRC for the purposes of this Part (as amended, whererelevant, by an HMRC officer).

(5) For further provision governing the steps which the officer may take, see, inparticular, Parts 7 and 12 of CEMA 1979.

14 (1) This paragraph applies if an HMRC officer considers at any time that thereis an inaccuracy in a Customs declaration (including as a result of aninaccuracy in a document accompanying it).

(2) The officer—(a) must notify the person making the declaration of the inaccuracy, and(b) must correct the declaration, or direct the person who has made the

declaration or any other appropriate person to make the necessarycorrections.

(3) Any liability to import duty in respect of any goods is determined on thebasis of the information contained in the Customs declaration as corrected(or required to be corrected) under this paragraph.

(4) A notification is not required to be given under sub-paragraph (2)(a) if anHMRC officer considers that doing so might prejudice an investigation thatcould result in legal proceedings (whether or not involving the person whowould otherwise be notified).

Amendment or withdrawal of Customs declarations

15 (1) A person who has made a Customs declaration is entitled to amend orwithdraw it at any time before a relevant event occurs.

(2) For this purpose “a relevant event occurs” on the first occurrence of any ofthe following—

(a) an HMRC officer indicating to the person that the officer intends totake steps to verify the declaration,

(b) an HMRC officer taking steps to verify the declaration, and(c) HMRC accepting the declaration.

16 Once a relevant event occurs, the person making the declaration may amendor withdraw it only if—

(a) a notification to amend or withdraw the declaration is given to anHMRC officer before the end of a period specified in a public noticegiven by HMRC Commissioners, and

(b) an HMRC officer consents to the making of the amendment or thewithdrawal.

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Releasing and discharging goods to and from Customs procedures

17 (1) Once chargeable goods are declared for a Customs procedure, the goodsremain subject to the control of any HMRC officer until the procedure isdischarged.

(2) If goods are declared for the free-circulation procedure, the goods arereleased to the procedure—

(a) when the import duty is paid, or(b) if satisfactory payment arrangements are in place, when the

declaration is accepted by HMRC.

(3) For this purpose “satisfactory payment arrangements” are in place only if—(a) an approved guarantee for the payment of import duty has effect in

relation to the goods, or(b) HMRC are, in cases specified in a public notice given by HMRC

Commissioners, otherwise satisfied, by reference to mattersspecified in the notice, that the import duty will be paid.

(4) The goods are discharged from the free-circulation procedure when HMRCnotify the person making the declaration that the goods are discharged fromthe procedure.

(5) Consequently, at that point—(a) the goods cease to be chargeable goods, and(b) the goods cease to be subject to control of an HMRC officer,

but nothing in this sub-paragraph prevents the subsequent exercise of apower of to verify the declaration under paragraph 13.

(6) If the goods are declared for a special Customs procedure, the goods arereleased to the procedure at whichever is the later of the following times—

(a) the time at which HMRC accept the declaration, or(b) if the procedure is one requiring the person making the declaration

to be authorised, the time determined in accordance with paragraph1(2)(f) of Schedule 2 as the time from which the procedure may beused in respect of the goods.

(7) Once goods are released to a special Customs procedure—(a) the goods are subject to the provision made by or under Schedule 2,

and(b) the procedure continues to have effect until it is discharged in

accordance with the provision made by or under that Schedule.

Declarations for different Customs procedures

18 (1) The fact that chargeable goods are declared for one Customs procedure doesnot prevent the goods from being subsequently declared for a differentCustoms procedure.

(2) Goods may not be released to a Customs procedure at any time if anotherCustoms procedure has effect in relation to the goods at that time (but this issubject to paragraph 20(2) of Schedule 2).

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Notifications given by HMRC or HMRC officers

19 (1) Any notification given by HMRC or an HMRC officer under this Schedulemay be given in such form and manner as the person giving it considersappropriate.

(2) HMRC Commissioners may by regulations make provision specifying caseswhere it is to be presumed that a person has been notified under thisSchedule (including cases where the presumption may not be rebutted).

SCHEDULE 2 Section 3(6)

SPECIAL CUSTOMS PROCEDURES

PART 1

ENTITLEMENT TO DECLARE GOODS FOR SPECIAL CUSTOMS PROCEDURES

1 (1) HMRC Commissioners may by regulations make provision entitling aperson to declare goods for a special Customs procedure only if—

(a) the person is authorised in accordance with provision made by orunder the regulations, and

(b) any other specified conditions are met in relation to the making ofthe declaration (for example, the giving of information or documentsto HMRC).

(2) The provision that the regulations may make in respect of authorisationsincludes (among other things)—

(a) provision for an authorisation to be granted only to personsestablished (as determined in accordance with provision made bythe regulations) in the United Kingdom or in any specified placeoutside the United Kingdom,

(b) provision for an authorisation to be granted only to persons meetingsuch other conditions as to their suitability as may be specified(which may be framed by reference to the judgment of any person),

(c) provision specifying other criteria for the granting of authorisations,(d) provision about the period for which an authorisation is to have

effect,(e) provision making the grant of the authorisation subject to conditions

specified in the authorisation (which may be framed by reference toa document published by HMRC Commissioners) or in theregulations,

(f) provision for determining the time from which a special Customsprocedure may be used in respect of any goods (including provisionfor the time to be determined in accordance with provision made bythe authorisation),

(g) provision for treating the making of a declaration as an applicationfor authorisation,

(h) provision for treating an application for authorisation (including oneas a result of paragraph (g)) as granted in specified cases, and

(i) provision granting an authorisation (a “retrospective authorisation”)with effect from a time before the application for it is made.

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(3) If the Treasury consider it appropriate for the regulations to contain aneconomic condition applicable to a qualifying case, they may give directionsto HMRC Commissioners requiring them to make regulations containingsuch a condition.

(4) For this purpose—“an economic condition”, in relation to any goods, means a condition

designed to secure that an authorisation is granted only if itsgranting would not adversely affect the interests of producers in theUnited Kingdom of the goods, and

“qualifying case” means a case where—(a) a person is authorised to declare goods for an inward

processing procedure, or(b) a person is granted a retrospective authorisation.

PART 2

STORAGE PROCEDURE

Meaning of goods declared for “a storage procedure”

2 (1) A declaration of goods for “a storage procedure” is a declaration that thegoods—

(a) are to be kept in premises approved by HMRC, or(b) are to be kept in a free zone,

in accordance with requirements imposed on any person by or underregulations made by HMRC Commissioners.

(2) References in this Part of this Schedule to cases where premises areapproved by HMRC include cases where the premises are owned, occupiedor otherwise used by a person approved by HMRC.

(3) HMRC Commissioners may by regulations make provision imposing anyother requirements on any person in relation to a storage procedure inrespect of goods that are kept in—

(a) premises approved by HMRC, or(b) free zones,

including provision as to what, or as to the extent to which, other activitiesmay, or may not, be done in the premises or free zones (or elsewhere).

(4) HMRC Commissioners may by regulations make any other provision thatthey consider appropriate for the purposes of import duty in relation togoods kept in free zones.

(5) In this Part of this Schedule “free zone” means an area in the UnitedKingdom designated as a special zone for customs purposes under section100A of CEMA 1979.

Keeping of goods in premises approved by HMRC

3 In the case of goods kept in premises approved by HMRC, each of thefollowing is an example of the kind of provision that may be made byregulations under paragraph 2—

(a) provision establishing the criteria for approval,(b) provision about the person to whom approval is to be granted,

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(c) provision making the continued effect of the approval subject to themeeting of conditions specified in the approval or in the regulations,

(d) provision for goods to be kept in premises only by the person towhom the approval is granted, and

(e) provision for any processing of goods to be limited to processing ofa description specified in the approval or in the regulations.

Keeping of goods in free zones

4 In the case of goods kept in free zones, each of the following is an exampleof the kind of provision that may be made by regulations under paragraph2—

(a) provision authorising any processing of goods, or the carrying on ofany other activity, in a free zone (subject only to restrictions or otherlimitations, exceptions or conditions that are specified),

(b) provision treating any chargeable goods entering a free zone as ifthey had been declared for a storage procedure,

(c) provision establishing a presumption (unless the contrary is shown)that goods taken out of a free zone are chargeable goods andrequiring the goods to be declared for a Customs procedure,

(d) provision requiring goods entering or leaving a free zone to bepresented at a place of a specified description together withdocuments of a specified description, and

(e) provision for exempting goods of a specified description from theapplication of any other provision made by or under this Part of thisAct in cases where they are wholly consumed in a free zone orotherwise cease to exist having been wholly used in a free zone.

PART 3

TRANSIT PROCEDURE

Meaning of goods declared for “a transit procedure”

5 (1) A declaration of goods for “a transit procedure” is a declaration—(a) that goods are to move from one place in the United Kingdom to

another place in the United Kingdom, and(b) that the goods, so long as they are in the United Kingdom, are to be

subject to requirements in relation to their movement in the UnitedKingdom imposed on any person by or under regulations made byHMRC Commissioners.

(2) Each of the following is an example of the kind of requirements that may beimposed by the regulations—

(a) a requirement for the goods to be presented at places of a specifieddescription together with documents of a specified description,

(b) a requirement for the goods to be presented at any place withinparagraph (a) at or before such time as may be specified,

(c) a requirement for the route by which the goods are to be moved to bea specified route,

(d) a requirement for the movement of the goods to be by a specifiedmeans of transport, and

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(e) requirements imposed on any person who is in possession or controlof the goods in circumstances where the person knows, or oughtreasonably to have known, that the goods are subject to a transitprocedure.

Other requirements in relation to transit procedure

6 (1) HMRC Commissioners may by regulations make provision imposing anyother requirements on any person in relation to a transit procedure inrespect of goods declared for the procedure.

(2) Each of the following is an example of the kind of requirements that may beimposed by the regulations—

(a) a requirement for the goods to be in a specified condition at specifiedtimes,

(b) a requirement for the goods to be identified by reference to specifieddocuments and for the documents to accompany the goods,

(c) a requirement for a person to permit the inspection of the goods, themeans of transport by which the goods are moved and thedocuments mentioned in paragraph (c), and

(d) a requirement imposed on any person for the purposes of, or inconnection with, implementing any international arrangement towhich Her Majesty’s government in the United Kingdom is a party.

Deeming a declaration for a transit procedure to be made

7 (1) Regulations made by HMRC Commissioners may make provision, inspecified cases, for treating a person as having declared goods for a transitprocedure.

(2) The regulations may make provision for treating a transit procedure forwhich goods are declared as a result of this paragraph as discharged inspecified cases.

PART 4

INWARD PROCESSING PROCEDURE

Introduction

8 A declaration of goods for “an inward processing procedure” may be—(a) a declaration in the standard form (which is dealt with by

paragraphs 9 and 10), or(b) a declaration in the supplementary form (which is dealt with by

paragraphs 11 and 12).

Meaning of goods declared for “an inward processing procedure” in the standard form

9 (1) A declaration of goods for “an inward processing procedure” in thestandard form is a declaration—

(a) that the goods are to be imported into the United Kingdom in orderto be processed there,

(b) that the processing is to take place during a temporary period,

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(c) that the processing is to consist of qualifying processing activities,and

(d) that the processing of the goods is to be carried out in accordancewith requirements imposed on any person by or under regulationsmade by HMRC Commissioners.

(2) The temporary period during which the processing is to take place is theperiod specified in a notice given to the person making the declaration by anHMRC officer.

(3) That period may be subsequently extended (or further extended) by anothernotice given as mentioned in sub-paragraph (2).

(4) For the purposes of this paragraph processing “consists of qualifyingprocessing activities” in relation to any goods if—

(a) the processing is the repair of the goods,(b) the processing of the goods (“the imported goods”) results in the

production or manufacture of other goods in which the importedgoods can be identified,

(c) the processing is the use of production accessories, or(d) the processing is the destruction of the goods.

(5) If an inward processing procedure in the standard form has effect in relationto any goods, the goods may be exported in accordance with the applicableexport provisions for a temporary period for processing outside the UnitedKingdom without discharging the procedure.

(6) The inward processing procedure in the standard form is not discharged inaccordance with sub-paragraph (5) only if—

(a) the processing of the goods outside the United Kingdom is carriedout in accordance with requirements imposed on any person by orunder regulations made by HMRC Commissioners,

(b) the processing takes place during a period specified in a notice givento the person making the declaration by an HMRC officer (and sub-paragraph (3) also applies for the purposes of this sub-paragraph),and

(c) any other conditions specified in regulations made by HMRCCommissioners are met.

(7) The requirements that may be imposed by regulations under this paragraphinclude—

(a) requirements that any processing of a specified description of anygoods must result in the production or manufacture of the approvedquantity of other goods, and

(b) requirements that any processing is to be carried out only by personsof a specified description.

(8) For the purposes of sub-paragraph (7)(a) “the approved quantity of othergoods” means a quantity of the other goods that is determined by referenceto a specified methodology.

(9) The provision that may be made by the regulations about a methodologyincludes provision for the methodology—

(a) to be framed by reference to average production or manufacture ofgoods over a period,

(b) to apply generally to specified cases, or

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(c) to be set by an HMRC officer or chosen by the person who hasdeclared the goods for an inward processing procedure in thestandard form (subject to other provision in the regulations limitingthe choice).

Other requirements in relation to inward processing procedure in the standard form

10 HMRC Commissioners may by regulations make provision imposing anyother requirements on any person in relation to an inward processingprocedure in the standard form in respect of goods declared for theprocedure.

Meaning of goods declared for “an inward processing procedure” in the supplementary form

11 A declaration of goods for “an inward processing procedure” in thesupplementary form is a declaration—

(a) that the goods are to be subject to any operation designed to securethat they comply with requirements that must be met before thegoods can lawfully be released for free circulation in the UnitedKingdom, or

(b) that the goods are to be subject to any operation designed to preservethem, improve their appearance or marketable quality or otherwiseprepare them for distribution or resale.

Requirements in relation to inward processing procedure in the supplementary form

12 (1) HMRC Commissioners may by regulations make provision imposingrequirements on any person in relation to an inward processing procedurein the supplementary form in respect of goods declared for the procedure.

(2) The provision that may be made by the regulations includes provision thatmay be made by or under paragraph 9 or 10.

PART 5

AUTHORISED USE PROCEDURE

Meaning of goods declared for “an authorised use procedure”

13 A declaration of goods for “an authorised use procedure” is a declarationthat the goods are to be subject to use of a description specified inregulations made by HMRC Commissioners.

Other requirements in relation to authorised use procedure

14 HMRC Commissioners may by regulations make provision imposing anyother requirements on any person in relation to an authorised use procedurein respect of goods declared for the procedure.

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PART 6

TEMPORARY ADMISSION PROCEDURE

Meaning of goods declared for “a temporary admission procedure”

15 A declaration of goods for “a temporary admission procedure” is adeclaration—

(a) that the goods are of a description specified in regulations made byHMRC Commissioners, and

(b) that the goods are to be used for a period specified in regulationsmade by HMRC Commissioners before the goods are exported fromthe United Kingdom in accordance with the applicable exportprovisions.

Other requirements in relation to temporary admission procedure

16 HMRC Commissioners may by regulations make provision imposing anyother requirements on any person in relation to a temporary admissionprocedure in respect of goods declared for the procedure.

PART 7

SUPPLEMENTARY PROVISIONS

Records

17 (1) HMRC Commissioners may by regulations make provision about thekeeping of records in respect of goods that are subject to a special Customsprocedure.

(2) The regulations may provide for requirements to be imposed, in respect ofrecords of a specified description, on—

(a) any person to whom an authorisation is granted to declare the goodsfor the procedure,

(b) any person to whom any other authorisation is granted inaccordance with regulations made under any provision of thisSchedule,

(c) any person who is involved to any extent in handling, processing,disposing of or otherwise dealing with the goods while theprocedure has effect, or

(d) any other person.

Discharge of special Customs procedures: rules applicable to all procedures

18 (1) The provision made by or under this Schedule in relation to goods declaredfor a special Customs procedure has effect from the time at which the goodsare released to the procedure until the time at which the procedure isdischarged in accordance with this paragraph or paragraph 19.

(2) A special Customs procedure is discharged if—(a) the goods are declared for another Customs procedure, and(b) HMRC accept the declaration.

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(3) Directions given by HMRC Commissioners may require a special Customsprocedure to be discharged before a date specified in, or determined inaccordance with, the directions.

(4) If—(a) the procedure is not discharged before that date, and(b) an HMRC officer gives a notice under this sub-paragraph to the

person who declared the goods for the procedure,the goods are treated for the purposes of this Part of this Act as if, at the timeat which the notice is given, that person had declared the goods for the free-circulation procedure and HMRC had accepted that declaration.

(5) Directions under this paragraph—(a) may be given generally by HMRC Commissioners or in relation to

the particular case concerned by an HMRC officer, and(b) if given generally, may be given by way of a public notice given by

HMRC Commissioners.

(6) Any regulations made under the Part of this Schedule relating to a particularspecial Customs procedure—

(a) may require the procedure to be discharged before a specified date,and

(b) may make provision replicating or applying, with or withoutmodifications, the provision made by sub-paragraph (4) or (5).

(7) Any regulations made under the Part of this Schedule relating to a particularspecial Customs procedure may require the goods to be presented at anyplace in accordance with the regulations before the procedure is discharged.

Discharge of special Customs procedures: rules applicable to particular procedures

19 (1) This paragraph specifies further cases in which particular special Customsprocedures are discharged.

(2) A transit procedure is discharged in accordance with provision made byregulations made by HMRC Commissioners.

(3) A storage procedure, an inward processing procedure, an authorised useprocedure or a temporary admission procedure is discharged if—

(a) the goods are exported from the United Kingdom in accordance withthe applicable export provisions,

(b) the goods are destroyed, or(c) the goods are liable to forfeiture.

(4) In addition, an authorised use procedure or temporary admission procedurein respect of any goods is discharged if the requirements imposed by orunder this Schedule in relation to the procedure are met in respect of thegoods.

Discharge of special Customs procedures: other provision

20 (1) Despite the provision made by paragraph 18 or 19, a special Customsprocedure in respect of any goods is not discharged if a liability to importduty is incurred in respect of the goods while the procedure has effect and—

(a) a guarantee has not been given in accordance with regulations underparagraph 6 of Schedule 6 that has effect in relation to the goods, or

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(b) if no guarantee is given, the import duty has not been paid.

(2) If a special Customs procedure in respect of any goods is prevented frombeing discharged as a result of sub-paragraph (1) (and only as a result of thatsub-paragraph), that does not prevent the goods from also being released toanother special Customs procedure.

(3) HMRC Commissioners may by regulations make provision as to theevidence which is to be required, or is to be sufficient, for the purpose ofshowing that a special Customs procedure has been discharged.

Liability to import duty imposed on persons other than declarant etc

21 (1) HMRC Commissioners may by regulations impose a liability to import dutyon any person who, at any time while a special Customs procedure haseffect, breaches a requirement imposed on the person by provision made byor under this Schedule.

(2) The regulations may provide for cases in which the person is not liable toimport duty even though the person breaches a requirement.

Changes in nature of goods while subject to a special Customs procedure etc

22 (1) If at any time while a special Customs procedure has effect in relation to anygoods—

(a) there is a change in the goods, and(b) a liability to import duty is incurred,

HMRC Commissioners may by regulations make provision for determiningthe liability by reference to the goods as they stood when the declaration forthe procedure was made (and not when the liability is incurred).

(2) The regulations—(a) may apply only in relation to a special Customs procedure of a

specified description, and(b) may provide for their application to be limited to cases where an

HMRC officer considers that the regulations ought to apply.

(3) In the case of goods declared for a special Customs procedure, HMRCCommissioners may make provision by regulations for altering the value ofthe goods for the purposes of import duty so as to take account of thingsdone after the declaration is made.

(4) The regulations may provide—(a) for the alteration to be applicable only in relation to special Customs

procedures of a specified description and only in relation to thingsdone of a specified description, and

(b) for the amount of the alteration to be determined in accordance withthe regulations.

(5) Except as provided for by—(a) the preceding provisions of this paragraph, or(b) provision made in regulations made by HMRC Commissioners,

if there is a change in any goods at any time while a special Customsprocedure has effect in relation to the goods, the goods are to be regardednonetheless as the same goods for the purposes of any provision made by orunder this Part of this Act.

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(6) For the purposes of this paragraph it does not matter—(a) whether a change in any goods is a change in their nature or in any

other respect, or(b) whether a change in any goods is as a result of their incorporation

into any other goods or anything else.

Use of equivalent domestic goods

23 (1) HMRC Commissioners may, in cases where goods (“the imported goods”)are intended to be declared for a special Customs procedure, by regulationsmake provision for requirements in relation to the procedure to be met byreference to equivalent domestic goods.

(2) Goods are “equivalent domestic goods” if they are domestic goods that areof the same, or of substantially the same, description as the imported goods.

(3) Among other things, the regulations may—(a) secure that, once a declaration of the imported goods for a special

Customs procedure is accepted by HMRC, the goods are treated forthe purposes of this Part of this Act as if they had beensimultaneously released to, and discharged from, the procedure, and

(b) provide that goods may not be so treated unless the requirements inrelation to the procedure were met by reference to the equivalentdomestic goods.

(4) The provision that may be made by the regulations includes provision forauthorising goods in accordance with the regulations before they may beused as equivalent domestic goods.

(5) HMRC Commissioners may by regulations make provision as to cases inwhich goods are, or are not, to be regarded as equivalent domestic goods forthe purposes of this paragraph.

(6) This paragraph does not apply to a transit procedure.

Directions

24 Any directions given by the Treasury or HMRC Commissioners under thisSchedule may be amended or revoked.

SCHEDULE 3 Section 10

ELIGIBLE DEVELOPING COUNTRIES

PART 1

INTRODUCTION

1 For the purposes of section 10—(a) a country or territory is an “eligible developing country” if it is listed

in Part 2 or Part 3 of this Schedule;(b) a country or territory is a “least developed country” if it is listed in

Part 2 of this Schedule.

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PART 2

LEAST DEVELOPED COUNTRIES

PART 3

OTHER ELIGIBLE DEVELOPING COUNTRIES

Afghanistan Congo(DemocraticRepublic)

Lesotho Sierra Leone

Angola Djibouti Liberia SolomonIslands

Bangladesh East Timor Madagascar Somalia

Benin EquatorialGuinea

Malawi South Sudan

Bhutan Eritrea Mali Sudan

Burkina Faso Ethiopia Mauritania Tanzania

Burma Gambia (The) Mozambique Togo

Burundi Guinea Nepal Tuvalu

Cambodia Guinea-Bissau Niger Uganda

CentralAfricanRepublic

Haiti Rwanda Vanuatu

Chad Kiribati Sao Tome andPrincipe

Yemen

Comoros Laos Senegal Zambia

Armenia Guyana Mongolia Sri Lanka

Bolivia Honduras Morocco Swaziland

Cameroon India Nauru Syria

Cape Verde Indonesia Nicaragua Tajikistan

Congo Ivory Coast Nigeria Tonga

Cook Islands Jordan Niue Tunisia

Egypt Kenya OccupiedPalestinianTerritories

Ukraine

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PART 4

POWER TO AMEND PARTS 2 AND 3

2 (1) The Secretary of State may by regulations add countries or territories to orremove them from a list in Part 2 or 3 if the Secretary of State is satisfiedthat—

(a) in the case of the list in Part 2, the country or territory has become, orceased to be, a least developed country or territory;

(b) in the case of the list in Part 3, the country has become, or ceased tobe, a country or territory that is similarly situated to the othercountries and territories listed in Part 3, in terms of its economiccharacteristics.

(2) In determining whether a country or territory has become or ceased to be aleast developed country or territory, the Secretary of State must have regardto its classification by the United Nations.

(3) In determining whether a country or territory has become or ceased to besimilarly situated to the other countries and territories listed in Part 3, theSecretary of State must have regard, among other things, to its classificationby the World Bank.

(4) The Secretary of State may by regulations amend a list in Part 2 or 3 to reflecta change in the name of a country or territory.


DUMPING OF GOODS OR FOREIGN SUBSIDIES CAUSING INJURY TO UK INDUSTRY

PART 1

KEY DEFINITIONS

Meaning of “dumped”

1 (1) For the purposes of this Schedule, goods are “dumped” in the UnitedKingdom if—

(a) they are imported into the United Kingdom, and(b) their export price is less than their normal value;

and references to the “dumping” of goods are to be read accordingly.

(2) The “normal value” of goods means—

El Salvador Kosovo Pakistan Uzbekistan

Georgia Kyrgyzstan Papua NewGuinea

Vietnam

Ghana Micronesia Philippines Zimbabwe

Guatemala Moldova Samoa 5

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(a) the comparable price, in the ordinary course of trade, for like goods(see paragraph 7) when destined for consumption in the exportingforeign country or territory, or

(b) such other price or value as may be determined in accordance withprovision made by regulations for specified cases where it is notappropriate to use the price in paragraph (a).

(3) Regulations may make provision for the purposes of this paragraph—(a) about what constitutes or does not constitute—

(i) the “export price” of goods;(ii) “the comparable price”;

(iii) “in the ordinary course of trade”;(iv) “the exporting foreign country or territory”;

(b) about how any of those matters are to be determined;(c) to ensure that a fair comparison is made between the export price of

goods and their normal value;(d) about the use of sampling to determine the export price or normal

value of goods.

Meaning of “the margin of dumping”

2 For the purposes of this Schedule, “the margin of dumping”, in relation togoods, means the amount which is the difference between—

(a) their export price as determined in accordance with paragraph 1, and(b) their normal value as determined in accordance with that paragraph.

Meaning of “subsidised”, “countervailable subsidy” and related terms

3 (1) For the purposes of this Schedule—(a) goods are “subsidised” if they are goods in respect of whose

manufacture, production, export or transport a countervailablesubsidy is granted, and

(b) references to the “subsidisation” of goods are to be read accordingly.

(2) For the purposes of this Schedule, a “countervailable subsidy” is a subsidywhich is specific and which is granted directly or indirectly for themanufacture, production, export or transport of goods.

(3) For the purposes of this Schedule, a “subsidy” exists if there is—(a) a financial contribution by a foreign authority which confers a

benefit, or (b) a form of income or price support within the meaning of Article XVI

of the General Agreement on Tariffs and Trade 1994 (being part ofAnnex 1A to the WTO Agreement) received from a foreign authoritywhich confers a benefit.

(4) For the purposes of this Schedule, a “foreign authority” means a governmentor public body within the territory of a foreign country or territory.

(5) Regulations may make provision for the purposes of this paragraph—(a) about what constitutes or does not constitute a “subsidy”, “a

financial contribution by a foreign authority”, “a government” or a“public body” and how any of those matters are to be determined;

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(b) about what constitutes or does not constitute “a benefit” and how itis to be determined whether a benefit is conferred;

(c) about what constitutes or does not constitute a subsidy which is“specific” and how it is to be determined whether such a subsidy isgranted directly or indirectly as described in sub-paragraph (2).

Meaning of “the amount of the subsidy”

4 (1) For the purposes of this Schedule, “the amount of the subsidy”, in relation togoods, means the amount of the benefit conferred during a specified periodby the countervailable subsidy as attributed to the goods in question.

(2) Regulations may make provision—(a) about how the amount of the benefit conferred by the

countervailable subsidy is to be determined for those purposes;(b) about what constitutes or does not constitute “benefit” for those

purposes;(c) about how the amount of the benefit conferred is to be attributed to

the goods in question.

(3) Such regulations may, among other things, make provision about the use ofsampling or cumulative assessments.

(4) “Specified period” means such period as may be specified by regulations.

Meaning of “injury”

5 (1) For the purposes of this Schedule, “injury” to a UK industry in particulargoods (see paragraph 6) means—

(a) material injury, or the threat of material injury, to the industry, or(b) material retardation of the establishment of the industry.

(2) Regulations may make provision about—(a) what constitutes or does not constitute material injury to a UK

industry or the threat of such injury for the purposes of thisSchedule;

(b) what constitutes or does not constitute material retardation of theestablishment of a UK industry for the purposes of this Schedule.

(3) Regulations may make provision about how it is to be determined for thepurposes of this Schedule whether—

(a) the dumping of goods in the United Kingdom has caused or iscausing injury to a UK industry in those goods, or

(b) the importation of subsidised goods into the United Kingdom hascaused or is causing injury to a UK industry in those goods.


Meaning of “UK industry”

6 (1) For the purposes of this Schedule, a “UK industry” in particular goodsmeans—

(a) all the producers in the United Kingdom of like goods (seeparagraph 7), or

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(b) those of them whose collective output of like goods constitutes amajor proportion of the total production in the United Kingdom ofthose goods.

(2) Regulations may make provision for the purposes of sub-paragraph (1)—(a) about what constitutes or does not constitute—

(i) a producer in the United Kingdom of like goods;(ii) such a producer’s output of like goods;

(iii) the total production in the United Kingdom of like goods;(iv) a major proportion of that total production;

(b) about how any of those matters are to be determined.

Meaning of “like goods”

7 (1) For the purposes of this Schedule, “like goods”, in relation to goods,means—

(a) goods which are like those goods in all respects, or(b) if there are no such goods, goods which, although not alike in all

respects, have characteristics closely resembling those of the goodsin question.

(2) Regulations may make provision about—(a) what constitutes or does not constitute “like goods” for the purposes

of this Schedule;(b) how “like goods” is to be determined for those purposes.

PART 2

DUMPING AND SUBSIDISATION INVESTIGATIONS

Dumping and subsidisation investigations

8 (1) The TRA may investigate—(a) whether goods have been or are being dumped in the United

Kingdom, and(b) whether the dumping of the goods has caused or is causing injury to

a UK industry in those goods.

(2) References in this Schedule to a “dumping investigation” are to aninvestigation under sub-paragraph (1).

(3) The TRA may investigate—(a) whether goods which have been or are being imported into the

United Kingdom are subsidised, and(b) whether the importation of the subsidised goods has caused or is

causing injury to a UK industry in those goods.

(4) References in this Schedule to a “subsidisation investigation” are to aninvestigation under sub-paragraph (3).

Initiation of a dumping or a subsidisation investigation

9 (1) The TRA may initiate a dumping or a subsidisation investigation in relationto goods only if—

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(a) it is requested to initiate an investigation in an application made—(i) by or on behalf of a UK industry in the goods (“the applicant

UK industry”), or(ii) in exceptional circumstances, by the Secretary of State,

(b) it is satisfied that the application contains sufficient evidence that—(i) the goods have been or are being dumped in the United

Kingdom and the dumping has caused or is causing injury toa UK industry in those goods, or

(ii) as the case may be, the goods have been or are beingimported into the United Kingdom and are subsidised, andthe importation of the subsidised goods has caused or iscausing injury to a UK industry in those goods,

(c) it is satisfied that it appears from that evidence that—(i) the volume of dumped goods (whether actual or potential),

and the injury, is more than negligible, and the margin ofdumping in relation to those goods is more than minimal, or

(ii) as the case may be, the volume of subsidised goods (whetheractual or potential), and the injury, is more than negligible,and the amount of the subsidy in relation to those goods ismore than minimal, and

(d) the market share requirement is met or the TRA waives therequirement in relation to the application.

(2) The market share requirement is met if—(a) in the case of an application under sub-paragraph (1)(a)(i), the TRA

is satisfied that the applicant UK industry has a share of the marketfor like goods for consumption in the United Kingdom (whetherproduced there or elsewhere) which is sufficient to justify initiatingthe investigation;

(b) in the case of an application under sub-paragraph (1)(a)(ii), the TRAis satisfied that a UK industry in the goods has a share of the marketfor like goods for consumption in the United Kingdom (whetherproduced there or elsewhere) which is sufficient to justify initiatingthe investigation.

(3) Regulations may make provision about—(a) what constitutes or does not constitute an application made by or on

behalf of a UK industry for the purposes of sub-paragraph (1)(a)(i);(b) when an application is made for the purposes of sub-paragraph

(1)(a);(c) the information to be contained in such an application;(d) the time limit for determining such an application;(e) what constitutes or does not constitute “negligible” and “minimal”

for the purposes of sub-paragraph (1)(c)(i) or (ii);(f) how it is to be determined for those purposes whether those

thresholds have been exceeded;(g) what constitutes or does not constitute “the market for like goods for

consumption in the United Kingdom” and a UK industry’s “share”of that market for the purposes of sub-paragraphs (1)(d) and (2);

(h) how any of those matters are to be determined for the purposes ofsub-paragraphs (1)(d) and (2).

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(4) If any of the requirements of sub-paragraph (1)(a) to (d) in respect of adumping or a subsidisation investigation (as the case may be) are not met,the TRA must reject the application and notify the applicant accordingly(unless it is the requirement in sub-paragraph (1)(a) that is not met becausethe application has been withdrawn).

(5) If the requirements of sub-paragraph (1)(a) to (d) in respect of a dumpinginvestigation are met, the TRA must—

(a) accept the application, (b) notify the governments of the relevant foreign countries or

territories,(c) initiate the investigation,(d) publish notice of its decision to initiate the investigation (including

notice of the goods which are the subject of the investigation), and(e) notify the Secretary of State and interested parties (see paragraph

32(3)) accordingly.

(6) If the requirements of sub-paragraph (1)(a) to (d) in respect of asubsidisation investigation are met, the TRA must—

(a) accept the application,(b) after the governments of the relevant foreign countries or territories

have been invited to participate in consultations, initiate theinvestigation,

(c) publish notice of its decision to initiate the investigation (includingnotice of the goods which are the subject of the investigation), and

(d) notify the Secretary of State and interested parties accordingly.

(7) “Relevant foreign country or territory” means—(a) in the case of an application for a dumping investigation, the

exporting foreign country or territory (within the meaning ofparagraph 1(2)) of the alleged dumped goods;

(b) in the case of an application for a subsidisation investigation, aforeign country or territory within whose territory is located aforeign authority which is alleged to have granted one or more of thesubsidies in question.

(8) Notices under sub-paragraphs (5)(d) and (e) and (6)(c) and (d) must specifythe date of the initiation of the investigation.

(9) Nothing in this paragraph prevents the TRA initiating both a dumpinginvestigation and a subsidisation investigation in relation to the same goodsif the requirements of sub-paragraph (1)(a) to (d) are met in the case of eachinvestigation.

Conduct of a dumping or a subsidisation investigation

10 (1) Regulations may make provision about the conduct of a dumping or asubsidisation investigation.

(2) Such regulations may, among other things, make provision about—(a) the stages of an investigation;(b) time limits for completion of a stage or of an investigation;(c) the termination of an investigation in certain circumstances in

relation to some or all of the goods;

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(d) the information which must or may be provided or made availableby the TRA to others;

(e) requests by the TRA for information from others and theconsequences of not providing the information requested or ofproviding information which is false or misleading;

(f) requests by the TRA to visit premises in or outside the UnitedKingdom and the consequences of not agreeing to such requests;

(g) the conduct of such visits;(h) the consequences of otherwise impeding an investigation;(i) the treatment of confidential or other information provided to or by

the TRA;(j) the provision and conduct of oral hearings.

Provisional affirmative determinations and final affirmative or negative determinations

11 (1) In the case of a dumping investigation, an “affirmative determination” inrelation to goods means a determination that—

(a) the goods have been or are being dumped in the United Kingdom,and

(b) the dumping of the goods has caused or is causing injury to a UKindustry in those goods.

(2) In the case of a subsidisation investigation, an “affirmative determination”in relation to goods means a determination that—

(a) the goods have been or are being imported into the United Kingdomand are subsidised, and

(b) the importation of the subsidised goods has caused or is causinginjury to a UK industry in those goods.

(3) At any stage during a dumping or a subsidisation investigation, the TRAmay make an affirmative determination, based on the evidence then beforeit, in relation to goods which are the subject of the investigation (referred toin this Schedule as “a provisional affirmative determination”).

(4) But the TRA may only make such a determination if it is satisfied thatinterested parties (see paragraph 32(3)) have been given an adequateopportunity to provide information to it regarding the investigation.

(5) The TRA must make a final determination in relation to each of the goodswhich are the subject of a dumping or a subsidisation investigation.

(6) A final determination under sub-paragraph (5) in relation to goods is—(a) an affirmative determination (referred to in this Schedule as a “final

affirmative determination”), or(b) if the TRA determines that it cannot make an affirmative

determination in relation to the goods, a negative determination(referred to in this Schedule as a “final negative determination”).

(7) The TRA may make different final determinations in relation to differentgoods which are the subject of the investigation.

(8) The TRA must—(a) publish notice of its final negative determination or final negative

determinations under sub-paragraph (5), and(b) notify the Secretary of State and interested parties accordingly.

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Termination of a dumping or a subsidisation investigation

12 A dumping or a subsidisation investigation in relation to goods terminates(if it has not already terminated by virtue of provision made underparagraph 10(1))—

(a) in a case where the TRA makes a final negative determination inrelation to the goods, when notice of that determination is publishedunder paragraph 11(8)(a),

(b) in a case where the TRA makes a final affirmative determination inrelation to the goods and determines that there is not arecommendation which it could make under paragraph 17(3) or (4)in relation to them, when notice of that determination is publishedunder paragraph 17(10)(b),

(c) in a case where the TRA makes a final affirmative determination inrelation to the goods and makes a recommendation under paragraph17(3) or (4) in relation to them which the Secretary of State rejects,when the notice of rejection is published under paragraph 20(3)(a), or

(d) in a case where the TRA makes a final affirmative determination inrelation to the goods and makes a recommendation under paragraph17(3) or (4) in relation to them which the Secretary of State accepts, atthe end of the day of publication of the public notice under section 13giving effect to the recommendation.

PART 3

PROVISIONAL REMEDY: REQUIRING A GUARANTEE

TRA’s duty to recommend requiring guarantees

13 (1) This paragraph applies where the TRA makes a provisional affirmativedetermination in relation to goods which are the subject of a dumping or asubsidisation investigation.

(2) Goods in relation to which that determination is made are referred to in thisparagraph as relevant goods.

(3) The TRA may recommend to the Secretary of State—(a) in the case of a dumping investigation that, in respect of all the

relevant goods, all importers of those goods should be required togive a guarantee in respect of any additional amount of import dutywhich would have been applicable, or potentially applicable, to thegoods under section 13 if an anti-dumping amount had been appliedto the goods based on the provisional affirmative determination (“anestimated anti-dumping amount”), or

(b) in the case of a subsidisation investigation that, in respect of all therelevant goods, all importers of those goods should be required togive a guarantee in respect of any additional amount of import dutywhich would have been applicable, or potentially applicable, to thegoods under section 13 if a countervailing amount had been appliedto the goods based on the provisional affirmative determination (“anestimated countervailing amount”).

(4) The TRA may make a recommendation under sub-paragraph (3) only if it issatisfied that requiring a guarantee in accordance with itsrecommendation—

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(a) is necessary to prevent injury being caused during the investigationto a UK industry in the relevant goods, and

(b) meets the economic interest test (see paragraph 25).

(5) The TRA may make different recommendations under sub-paragraph (3) fordifferent relevant goods or descriptions of relevant goods, including byreference to—

(a) specified overseas exporters or descriptions of overseas exporter;(b) specified foreign countries or territories or descriptions of foreign

countries or territories.

(6) But the TRA may only make one recommendation under paragraph (a) or,as the case may be, paragraph (b) of sub-paragraph (3) in relation to anyparticular relevant good.

(7) And the TRA may make different recommendations under paragraph (a) or(b) of sub-paragraph (3) for different relevant goods or descriptions ofrelevant goods only if the recommendations which it makes under thatparagraph when taken together cover all the relevant goods.

(8) If the TRA determines that there are one or more recommendations which itcould make under paragraph (a) or, as the case may be paragraph (b), of sub-paragraph (3), it must make that recommendation or thoserecommendations (subject to sub-paragraphs (6) and (7)).

(9) If the TRA determines that there is no recommendation which it could makeunder sub-paragraph (3), it must—

(a) publish notice of its provisional affirmative determination in relationto the goods,

(b) publish notice of its determination that there is no recommendationwhich it could make under sub-paragraph (3), and

(c) notify the Secretary of State and interested parties (see paragraph32(3)) accordingly.

TRA’s recommendations regarding requiring a guarantee

14 (1) A recommendation under paragraph 13(3) to require the giving of aguarantee in respect of goods must specify those goods and include—

(a) the TRA’s recommendation regarding—(i) the form of the guarantee,

(ii) how an estimated anti-dumping amount or an estimatedcountervailing amount applicable to the goods should bedetermined for the purpose of calculating the amount of theguarantee,

(iii) how the amount of the guarantee should be calculated, and(iv) the period during which the requirement to give a guarantee

should apply, and(b) such other content as regulations may require.

(2) The form of guarantee referred to in sub-paragraph (1)(a)(i) may be cash, abond or a bank guarantee.

(3) The recommendation referred to in sub-paragraph (1)(a)(ii) must be suchthat an estimated anti-dumping amount or an estimated countervailingamount does not exceed—

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(a) the margin of dumping or, as the case may be, the amount of thesubsidy, in relation to the goods as determined by the TRA as part ofits provisional affirmative determination, or

(b) the amount which the TRA is satisfied would be adequate to removethe injury to a UK industry in the goods if that amount is less thanthe margin of dumping or, as the case may be, the amount of thesubsidy referred to in paragraph (a).

(4) Regulations may make provision for the purposes of sub-paragraph (3)(b)about how the amount which the TRA is satisfied would be adequate toremove the injury described in that provision is to be determined.

(5) The period referred to in sub-paragraph (1)(a)(iv)—(a) must not exceed 6 months in the case of a dumping investigation (but

see paragraph 16 regarding extensions), or 4 months in the case of asubsidisation investigation, and

(b) if the recommendation is accepted by the Secretary of State, mustbegin—

(i) on the day after the date of publication of the notice underparagraph 15(4)(b), or

(ii) if later, on the day which is the day after the end of the periodof 60 days beginning with the date of the initiation of theinvestigation.

Secretary of State’s power to require a guarantee

15 (1) If the TRA makes a recommendation under paragraph 13(3), the Secretary ofState must decide whether to accept or reject the recommendation.

(2) The Secretary of State may reject the recommendation only if the Secretaryof State is satisfied that—

(a) requiring a guarantee in accordance with the recommendation doesnot meet the economic interest test (see paragraph 25), or

(b) it is not otherwise in the public interest to accept therecommendation.

(3) If the recommendation is rejected, the Secretary of State must—(a) publish notice of the TRA’s provisional affirmative determination in

relation to the goods, of the recommendation and of the rejection ofit,

(b) notify interested parties (see paragraph 32(3)) accordingly, and(c) lay a statement before the House of Commons setting out the reasons

for rejecting the recommendation.

(4) If the recommendation is accepted, the Secretary of State must—(a) publish notice of the TRA’s provisional affirmative determination in

relation to the goods and of the recommendation,(b) publish a notice that all importers of the goods specified in the

recommendation are required to give a guarantee in accordance withthe recommendation and regulations under paragraph 6 of Schedule6, and

(c) notify interested parties accordingly.

(5) The notice under sub-paragraph (4)(b) must—

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(a) specify, in accordance with the TRA’s recommendation, the mattersreferred to in paragraph 14(1)(a)(i) to (iv), and

(b) include such other content as regulations may require.

(6) For the purposes of this Schedule, “the period of a provisional remedy” inrespect of goods means the period during which the requirement to give aguarantee in respect of the goods applies.

(7) The period of a provisional remedy in respect of goods ceases (if it has notalready expired) when the dumping investigation or, as the case may be, thesubsidisation investigation in relation to the goods terminates.

Extension of the period of a provisional remedy in a dumping investigation

16 (1) Regulations may make provision for, or in connection with, the extension bythe Secretary of State, on the recommendation of the TRA, of the period of aprovisional remedy which has been applied in respect of goods in the caseof a dumping investigation.

(2) Any such extension must not result in the period of the provisional remedybeing a period of more than 9 months beginning with the date when therequirement to give a guarantee in respect of goods first applied.

(3) The regulations must require that if the period of a provisional remedy isextended, the Secretary of State—

(a) publishes a revised notice under paragraph 15(4)(b) containing therevised period of the provisional remedy in accordance with theTRA’s recommendation, and

(b) notifies interested parties (see paragraph 32(3)) accordingly.

PART 4

DEFINITIVE REMEDIES: ANTI-DUMPING AMOUNT OR COUNTERVAILING AMOUNT

TRA’s duty to recommend an anti-dumping amount or countervailing amount

17 (1) This paragraph applies where the TRA makes a final affirmativedetermination in relation to goods which are the subject of a dumping or asubsidisation investigation.


(3) In the case of a dumping investigation, the TRA may recommend to theSecretary of State—

(a) that an additional amount of import duty (referred to in thisSchedule as an “anti-dumping amount”) should be applicable for aspecified period to all the relevant goods except, in the case of goodsin respect of which an undertaking is accepted under provisionmade by or under Part 5, during any period when the undertakingapplies, and

(b) how an anti-dumping amount applicable to the relevant goodsshould be determined.

(4) In the case of a subsidisation investigation, the TRA may recommend to theSecretary of State—

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(a) that an additional amount of import duty (referred to in thisSchedule as a “countervailing amount”) should be applicable for aspecified period to all the relevant goods except, in the case of goodsin respect of which an undertaking is accepted under provisionmade by or under Part 5, during any period when the undertakingapplies, and

(b) how a countervailing amount applicable to the relevant goodsshould be determined.

(5) The TRA may make a recommendation under sub-paragraph (3) or (4) onlyif it is satisfied that the application of an anti-dumping amount or acountervailing amount in accordance with its recommendation meets theeconomic interest test (see paragraph 25).

(6) The TRA may make different recommendations under sub-paragraph (3) or(4) for different relevant goods or descriptions of relevant goods, includingby reference to—

(a) specified overseas exporters or descriptions of overseas exporters;(b) specified foreign countries or territories or descriptions of foreign

countries or territories.

(7) But the TRA may only make one recommendation under sub-paragraph (3)or, as the case may be, sub-paragraph (4) in relation to any particularrelevant good.

(8) And the TRA may make different recommendations under sub-paragraph(3) or (4) for different relevant goods or descriptions of relevant goods onlyif the recommendations which it makes under that sub-paragraph whentaken together cover all the relevant goods.

(9) If the TRA determines that there are one or more recommendations which itcould make under sub-paragraph (3) or, as the case may be, sub-paragraph(4), it must make that recommendation or those recommendations (subjectto sub-paragraphs (7) and (8)).

(10) If the TRA determines that there is no recommendation which it could makeunder sub-paragraph (3) or (4) (as the case may be), it must—

(a) publish notice of its final affirmative determination in relation to thegoods,

(b) publish notice of its determination that there is no recommendationwhich it could make under sub-paragraph (3) or (4), and


TRA’s recommendations about an anti-dumping amount or a countervailing amount

18 (1) This paragraph applies to a recommendation by the TRA under paragraph17(3) or (4) in relation to goods.

(2) The specified period referred to in paragraph 17(3)(a) or (4)(a)—(a) must be such period as the TRA considers necessary to counteract—

(i) the dumping of the goods which has caused or is causinginjury to a UK industry in the goods, or

(ii) the importation of the subsidised goods which has caused oris causing injury to a UK industry in the goods,

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(b) must not exceed 5 years (but see paragraph 21 regarding thepossibility of extensions or other variations to that period followinga review), and

(c) if the recommendation is accepted by the Secretary of State, mustbegin on the day after the date of publication of the public noticeunder section 13 giving effect to the recommendation (see paragraph20(4)(c)) unless the TRA is authorised by regulations underparagraph 19 to recommend a date before then.

(3) The recommendation referred to in paragraph 17(3)(b) or (4)(b) as to how ananti-dumping amount or a countervailing amount applicable to goodsshould be determined may be by reference to either or both of thefollowing—


quantity or size.

(4) But that recommendation must be such that an anti-dumping amount or acountervailing amount applicable to goods does not exceed—

(a) the margin of dumping or, as the case may be, the amount of thesubsidy, in relation to the goods, or

(b) the amount which the TRA is satisfied would be adequate to removethe injury to a UK industry in the goods if that amount is less thanthe margin of dumping or, as the case may be, the amount of thesubsidy referred to in paragraph (a).

(5) Regulations may make provision for the purposes of sub-paragraph (4)(b)about how the amount which the TRA is satisfied would be adequate toremove the injury described in that provision is to be determined.

(6) A recommendation under paragraph 17(3) or (4) must include such othercontent as regulations may require.

19 (1) Regulations may make provision authorising the TRA, in specifiedcircumstances, to recommend under paragraph 17(3) or (4) that the specifiedperiod for which an anti-dumping amount or a countervailing amountshould apply to goods begins on a date (“the relevant date”) before the dayafter the date of publication of the public notice under section 13 givingeffect to the recommendation.

(2) Such a recommendation may only be made in relation to goods in respect ofwhich a requirement to give a guarantee under paragraph 15 is applied (“theprovisional remedy”).

(3) “The relevant date” must be—(a) in a case where a notice under paragraph 29(1) (registration) has

been published in respect of the goods—(i) a date during the period of 90 days before the beginning of

the period of the provisional remedy provided it is not a datebefore the date of publication of that notice, or

(ii) a date during the period of the provisional remedy, or(b) in any other case, a date during the period of the provisional remedy.

(4) Regulations may provide that, in the case of a recommendation made byvirtue of sub-paragraph (1), the recommendation as to how an anti-dumpingamount or a countervailing amount should be determined must be such that

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an anti-dumping amount or a countervailing amount applicable for all orpart of the relevant period must not exceed a particular amount.

(5) “The relevant period” is the period—(a) beginning with the relevant date, and(b) ending with the date of publication of the public notice under section

13 giving effect to the recommendation.

Secretary of State’s power to accept or reject a recommendation

20 (1) If the TRA makes a recommendation under paragraph 17(3) or (4), theSecretary of State must decide whether to accept or reject therecommendation.


(a) the application of an anti-dumping amount or a countervailingamount to goods in accordance with the recommendation does notmeet the economic interest test (see paragraph 25), or


(3) If the recommendation is rejected, the Secretary of State must—(a) publish notice of the TRA’s final affirmative determination in




(4) If the recommendation is accepted, the Secretary of State—(a) must publish notice of the TRA’s final affirmative determination in

relation to the goods, of the recommendation and of the acceptanceof it,

(b) must notify interested parties accordingly, and(c) is required under section 13 to make provision by public notice to

give effect to the recommendation.

(5) See paragraphs 21 and 22 for variation or revocation of the application of ananti-dumping amount or a countervailing amount.

Reviews of continuing application of an anti-dumping amount or a countervailing amount

21 (1) Regulations may make provision for, or in connection with, reviews by theTRA of the continuing application of an anti-dumping amount or acountervailing amount to goods.

(2) References in this paragraph to “a review” are to a review by virtue ofprovision made under sub-paragraph (1).

(3) Regulations under sub-paragraph (1) may, among other things, provide fora review to consider—

(a) whether the continuing application of an anti-dumping amount or acountervailing amount to goods is necessary or sufficient to offset—

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(i) in the case of an anti-dumping amount, the dumping of thegoods which has caused or is causing injury to a UK industryin the goods, or

(ii) in the case of a countervailing amount, the importation of thesubsidised goods which has caused or is causing injury to aUK industry in the goods;

(b) whether the application of an anti-dumping amount or acountervailing amount to goods is having the effect of removinginjury to a UK industry in the goods;

(c) whether injury to a UK industry in the goods would be likely tocontinue or recur if the application of an anti-dumping amount or acountervailing amount to the goods were to expire, or it were to bevaried or revoked;

(d) whether activity is being undertaken to circumvent the applicationof an anti-dumping amount or a countervailing amount to goods andwhether the application should be varied to prevent that;

(e) whether the application of an anti-dumping amount or acountervailing amount to goods in the case of a particular overseasexporter, or a particular description of overseas exporter, should bevaried;

(f) the goods or description of goods to which an anti-dumping amountor a countervailing amount is applicable.

(4) Regulations under sub-paragraph (1) may, among other things, make— (a) provision for the TRA to investigate certain matters;(b) provision for the period for which an anti-dumping amount or a

countervailing amount applies to goods by public notice undersection 13 to be treated as continuing (where it would otherwisecease to do so) while a review in relation to the application of theamount is ongoing;

(c) provision for the suspension, by public notice given by the Secretaryof State, of the application of an anti-dumping amount or acountervailing amount while a review in relation to it is ongoing;

(d) other provision about the conduct of a review.

(5) Paragraph 10(2) applies to regulations made by virtue of sub-paragraph(4)(d) in relation to a review as it applies to regulations under paragraph10(1) in relation to an investigation.

(6) Regulations may make provision for or in connection with—(a) the TRA recommending to the Secretary of State that the application

of an anti-dumping amount or a countervailing amount to goodsshould be varied or revoked, and

(b) the Secretary of State accepting or rejecting such a recommendation.

(7) Where, by virtue of provision made under sub-paragraph (6), the Secretaryof State accepts a recommendation that the application of an anti-dumpingamount or a countervailing amount to goods should be varied or revoked,the Secretary of State—

(a) must publish notice of the recommendation and of the acceptance ofit,

(b) must notify interested parties (see paragraph 32(3)) accordingly, and(c) is required under section 13 to make provision by public notice to


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(8) The variation of the application of an anti-dumping amount or acountervailing amount to goods which the TRA may recommend to theSecretary of State by virtue of regulations under sub-paragraph (6) may,among other things, include—

(a) varying the goods or descriptions of goods to which an anti-dumping amount or a countervailing amount is applicable(including so that it is applicable to goods or descriptions of goods towhich it has not previously been applicable);

(b) varying the period for which an anti-dumping amount or acountervailing amount is applicable (including extending it beyondthe 5 year period referred to in paragraph 18(2)(b));

(c) varying how an anti-dumping amount or a countervailing amountshould be determined.

(9) Regulations under sub-paragraph (6) may provide that the TRA mayrecommend that the application of an anti-dumping amount or acountervailing amount as varied should be applicable to goods from a date(“the relevant date”) before the date of publication of the public notice undersection 13 giving effect to the recommendation.

(10) Such a recommendation may only be made if—(a) a notice under paragraph 29(1) (registration) has been published in

respect of the goods, and(b) the relevant date is not a date before the date of publication of that

notice.

Variation or revocation following an international dispute decision

22 (1) Regulations may make provision for or in connection with—(a) the TRA recommending to the Secretary of State that the application

of an anti-dumping amount or a countervailing amount to goodsshould be varied or revoked in light of an international disputedecision, and


(2) The regulations may, among other things—(a) provide for the TRA to investigate certain matters for the purposes

of determining whether to make a recommendation to the Secretaryof State and what to recommend;

(b) make provision about the conduct of such an investigation;(c) provide for the suspension, by public notice given by the Secretary

of State, of the application of an anti-dumping amount or acountervailing amount.

(3) Paragraph 10(2) applies to regulations made by virtue of sub-paragraph(2)(b) in relation to an investigation as it applies to regulations underparagraph 10(1) in relation to a dumping or a subsidisation investigation.

(4) Where, by virtue of provision made under the regulations, the Secretary ofState accepts a recommendation that the application of an anti-dumpingamount or a countervailing amount to goods should be varied or revoked,the Secretary of State—


(b) must notify interested parties (see paragraph 32(3)) accordingly, and

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(c) is required under section 13 to make provision by public notice togive effect to the recommendation.

(5) The variation of the application of an anti-dumping amount or acountervailing amount to goods which the regulations may provide formay, among other things, include any of the variations mentioned inparagraph 21(8).

(6) An “international dispute decision” means—(a) a report of a panel or Appellate Body that is adopted by the Dispute

Settlement Body of the WTO, or(b) if not within paragraph (a), a decision under the dispute settlement

procedures of an arrangement relating to trade to which HerMajesty’s government in the United Kingdom is a party with thegovernment of another country or territory.

PART 5

UNDERTAKINGS

Acceptance of undertakings

23 (1) Where the TRA determines to recommend to the Secretary of State underparagraph 17(3) or (4) that an anti-dumping amount or a countervailingamount should be applicable to goods, the TRA may also recommend to theSecretary of State the acceptance of an undertaking in respect of the goods.

(2) In this Part, an “undertaking” means—(a) in the case of the dumping of goods, an undertaking offered by an

overseas exporter of the goods—(i) to revise the overseas exporter’s prices for export to the

United Kingdom, or(ii) to cease exports to the United Kingdom at prices which cause

the goods to be dumped;(b) in the case of subsidised goods—

(i) an undertaking offered by an overseas exporter of the goodsto revise the overseas exporter’s prices for export to theUnited Kingdom, or

(ii) an undertaking offered by a relevant foreign government toeliminate or limit the importation into the United Kingdomof the subsidised goods or to take other measures concerningits effects.

(3) “A relevant foreign government” means the government of a foreigncountry or territory—

(a) which granted one or more of the countervailable subsidies inquestion, or

(b) within whose territory is located a foreign authority which grantedone or more of those subsidies.

(4) Regulations may make provision about—(a) recommendations by the TRA under sub-paragraph (1);(b) the acceptance of undertakings by the Secretary of State on such a

recommendation.

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(5) The regulations must secure that the TRA may request an undertaking inrespect of goods only—

(a) at a time after it has made a provisional affirmative determination inrelation to the goods, and

(b) if such other requirements as the regulations may specify are met.

(6) The regulations must secure that the TRA may recommend the acceptanceof an undertaking in respect of goods to the Secretary of State only if it issatisfied that—

(a) the undertaking is sufficient to eliminate the injurious effect of—(i) the dumping of the goods to a UK industry in those goods, or

(ii) the importation of the subsidised goods to a UK industry inthose goods,

(b) acceptance of the undertaking meets the economic interest test (seeparagraph 25), and

(c) it is appropriate to accept the undertaking.

(7) The regulations may make provision for the purposes of sub-paragraph(6)(c) about the circumstances where it is or is not appropriate to accept anundertaking.

(8) Those circumstances may include that the terms and conditions of anundertaking include provision for the provision of information to enable themonitoring of compliance with the undertaking.

(9) The regulations must require that if the Secretary of State accepts anundertaking, the Secretary of State—

(a) publishes a notice to that effect, and(b) notifies interested parties (see paragraph 32(3)) accordingly.

Reviews of undertakings etc

24 (1) Regulations may make provision for or in connection with—(a) monitoring compliance with an undertaking;(b) investigations by the TRA of breach of an undertaking;(c) reviews by the TRA of the continuing application of an undertaking;(d) the circumstances in which an undertaking ceases to apply;(e) the acceptance of a new undertaking in place of an existing

undertaking.

(2) Regulations under sub-paragraph (1)(c) may, among other things, providefor a review to consider—

(a) whether the continuing application of the undertaking is sufficient toeliminate the injurious effect of—

(i) the dumping of the goods to a UK industry in the goods, or(ii) the importation of the subsidised goods to a UK industry in

the goods;(b) whether the continuing application of the undertaking is

appropriate.

(3) Paragraph 10(2) applies to regulations under sub-paragraph (1)(b) or (c) inrelation to an investigation or review as it applies to regulations underparagraph 10(1) in relation to a dumping or a subsidisation investigation.

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(4) The reference in sub-paragraph (1)(e) to the acceptance of a newundertaking is to the acceptance of an undertaking in respect of goods by theSecretary of State, on the recommendation of the TRA.

(5) Sub-paragraphs (4) and (6) to (9) of paragraph 23 apply to regulations undersub-paragraph (1)(e) in relation to the acceptance of new undertakings byvirtue of those regulations as they apply to the acceptance of undertakingsby virtue of regulations under paragraph 23(4).

(6) References in sub-paragraph (1) to an “undertaking” (other than thereference in sub-paragraph (1)(e) to a “new undertaking”) are to anundertaking accepted by the Secretary of State by virtue of regulationsunder paragraph 23(4) or sub-paragraph (1)(e).

PART 6

SUPPLEMENTARY

The economic interest test

25 (1) This paragraph applies if the TRA or the Secretary of State is considering, forthe purposes of this Schedule, whether the TRA or the Secretary of State issatisfied that the application of an anti-dumping remedy or anti-subsidyremedy meets or does not meet the economic interest test.

(2) The economic interest test is met in relation to the application of an anti-dumping remedy or anti-subsidy remedy if the application of the remedy isin the economic interest of the United Kingdom.

(3) That test is presumed to be met unless the TRA or, as the case may be, theSecretary of State is satisfied that the application of the remedy is not in theeconomic interest of the United Kingdom.

(4) When considering whether the application of an anti-dumping remedy oranti-subsidy remedy is not in the economic interest of the United Kingdom,the TRA or the Secretary of State must—

(a) take account of the following so far as relevant—(i) the economic significance of affected industries and

consumers in the United Kingdom,(ii) the likely impact on affected industries and consumers in the

United Kingdom,(iii) the likely impact on particular geographic areas, or particular

groups, in the United Kingdom, and(iv) the likely consequences for the competitive environment, and

for the structure of markets for goods, in the UnitedKingdom, and

(b) take account of such other matters as the TRA or, as the case may be,the Secretary of State considers relevant.

(5) In this paragraph—(a) references to the application of an anti-dumping remedy are to—

(i) requiring the giving of a guarantee under paragraph 15,(ii) applying an anti-dumping amount to goods, or

(iii) accepting an undertaking under provision made by or underPart 5;

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(b) references to the application of an anti-subsidy remedy are to—(i) requiring the giving of a guarantee under paragraph 15,

(ii) applying a countervailing amount to goods, or(iii) accepting an undertaking under provision made by or under

Part 5;(c) “affected industries and consumers” means industries and

consumers that would be affected if the anti-dumping remedy oranti-subsidy remedy were, or were not, to be applied;

(d) “industries” includes—(i) producers and suppliers of goods or services, and

(ii) importers, distributors and retailers of goods;(e) “consumers” includes users of goods or services.

Suspension of anti-dumping or anti-subsidy remedies


of an anti-dumping remedy or anti-subsidy remedy should besuspended, and


(2) The regulations must secure that the TRA may make such arecommendation to the Secretary of State only if the TRA is satisfied thatmarket conditions have temporarily changed such that the injury caused toa UK industry in the goods would be unlikely to recur as a result of thesuspension.

(3) Regulations may make provision for the purposes of sub-paragraph (2)about what constitutes or does not constitute “market conditions” or atemporary change in such conditions.

(4) Regulations under sub-paragraph (1) may, among other things, make—(a) provision for the TRA to investigate certain matters;(b) provision about the conduct of such an investigation;(c) provision about the period for which a suspension may have effect;(d) provision about whether that period counts towards the period for

which the suspended remedy applies.

(5) Paragraph 10(2) applies to regulations under sub-paragraph (4)(b) inrelation to an investigation as it applies to regulations under paragraph 10(1)in relation to a dumping or a subsidisation investigation.

(6) Where, by virtue of provision made under sub-paragraph (1), the Secretaryof State accepts a recommendation that the application of an anti-dumpingremedy or anti-subsidy remedy should be suspended, the Secretary ofState—




(7) References in this paragraph to the application of an anti-dumping remedyor anti-subsidy remedy have the same meaning as in paragraph 25.

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Not subject to both application of an anti-dumping amount and a countervailing amount

27 (1) An anti-dumping amount is not applicable to goods if a countervailingamount is already applicable to the goods (and vice versa) for the purposeof dealing with the same situation arising from the dumping of goods orexport subsidisation.

(2) Regulations may make provision about what constitutes or does notconstitute “export subsidisation” for those purposes.

Investigations regarding repayments and discharge of a guarantee

28 (1) Regulations may provide for the TRA to investigate specified matters for thepurpose of determining whether—

(a) a repayment of an anti-dumping amount or a countervailingamount, or interest paid in respect of any such amounts, should bemade under regulations made under paragraph 10 of Schedule 6;

(b) the whole or a part of a guarantee given under paragraph 15 shouldbe discharged under regulations made under paragraph 6 ofSchedule 6.

(2) The regulations may make provision about the conduct of any suchinvestigation.

(3) Paragraph 10(2) applies to those regulations in relation to such aninvestigation as it applies to regulations under paragraph 10(1) in relation toa dumping or a subsidisation investigation.

Registration

29 (1) The Secretary of State may publish a notice of goods— (a) which are the subject of an investigation or other proceedings under

provision made by or under this Schedule, and(b) to which an anti-dumping amount or a countervailing amount may

be applied or the existing application of an anti-dumping amount ora countervailing amount to which may be varied.

(2) HMRC must register goods in respect of which such a notice is published.

(3) Regulations may make provision for, or in connection with, the registrationby HMRC of goods—

(a) to which an anti-dumping amount or a countervailing amount maybe applied, or

(b) the existing application of an anti-dumping amount or acountervailing amount to which may be varied.

Reconsideration, reviews and appeals

30 Regulations may make provision for or in connection with—(a) the reconsideration by the TRA of decisions made by the TRA under

provision made by or under this Schedule, and(b) the review or appeal of decisions made by the TRA or the Secretary

of State under provision made by or under this Schedule.

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Notices

31 (1) Where a notice is required to be published or given by a provision made byor under this Schedule, regulations may make provision about—

(a) the form of the notice;(b) its content;(c) the manner of publication;(d) the means by which it is given;(e) the time or date on which it is published or given or is to be treated

as published or given.

(2) Such regulations may, among other things, provide—(a) for some of the content of the notice to be contained in a separate

report to which the notice refers, and(b) for that report to be published or for it to be given, or otherwise made

available to, the persons to whom the notice is required to be given.

(3) The provision made by regulations under this paragraph about the contentof a notice is in addition to any such provision made by or under any otherprovision of this Schedule.

(4) Sub-paragraph (1)(c) does not apply to a public notice under provision madeunder paragraph 21(4)(c) or 22(2)(c) (see section 37(5)).

Interpretation

32 (1) In this Schedule—“anti-dumping amount” has the meaning given by paragraph 17(3);“the amount of the subsidy”, in relation to goods, has the meaning

given by paragraph 4;“countervailable subsidy” has the meaning given by paragraph 3(2);“countervailing amount” has the meaning given by paragraph 17(4);“dumped” and “dumping” have the meaning given by paragraph 1(1);“dumping investigation” has the meaning given by paragraph 8(2);“final affirmative determination”, in relation to goods, has the meaning

given by paragraph 11(6)(a);“final negative determination”, in relation to goods, has the meaning

given by paragraph 11(6)(b);“foreign authority” has the meaning given by paragraph 3(4);“foreign country or territory” means a country or territory outside the

United Kingdom;“importer” of goods means a person liable to pay import duty in respect

of the goods;“injury” to a UK industry in particular goods has the meaning given by

paragraph 5;“interested parties” has the meaning given by sub-paragraph (3);“like goods”, in relation to goods, has the meaning given by paragraph

7;“the margin of dumping”, in relation to goods, has the meaning given

by paragraph 2;“overseas exporter” means a person outside the United Kingdom that

exports goods to the United Kingdom;

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“the period of a provisional remedy”, in respect of goods, has themeaning given by paragraph 15(6);

“provisional affirmative determination”, in relation to goods, has themeaning given by paragraph 11(3);

“regulations” means regulations made by the Secretary of State;“subsidisation investigation” has the meaning given by paragraph 8(4);“subsidised” and “subsidisation” have the meaning given by

paragraph 3(1);“subsidy” has the meaning given by paragraph 3(3);“UK industry”, in particular goods, has the meaning given by

paragraph 6;“the WTO Agreement” means the agreement establishing the WTO

signed at Marrakesh on 15 April 1994.

(2) References in this Schedule to the economic interest test are to be construedin accordance with paragraph 25.

(3) References in a provision of this Schedule to “interested parties” means thegovernments of such foreign countries or territories, or such other persons,as may be specified in regulations made under this sub-paragraph for thepurposes of the provision in question.


INCREASE IN IMPORTS CAUSING SERIOUS INJURY TO UK PRODUCERS

PART 1

KEY DEFINITIONS

Meaning of importation in “increased quantities”

1 (1) For the purposes of this Schedule, goods are imported into the UnitedKingdom in “increased quantities” if—

(a) the volume of imports of the goods increases, whether in absoluteterms or relative to the total production in the United Kingdom oflike goods and directly competitive goods, and

(b) that increase is significant.

(2) Regulations may make provision for the purposes of sub-paragraph (1)—(a) about how it is to be determined whether or not there has been an

increase in the volume of imports;(b) about how the amount of the increase is to be determined;(c) about what constitutes or does not constitute a “significant” increase,

including provision for an increase not to constitute a “significant”increase if it was foreseeable.

(3) “The total production in the United Kingdom of like goods and directlycompetitive goods” has the same meaning as in paragraph 3.

(4) See paragraphs 4 and 5 for the meaning of “like goods” and “directlycompetitive goods”.

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Meaning of “serious injury”

2 (1) For the purposes of this Schedule, “serious injury” to UK producers ofparticular goods (see paragraph 3) means—

(a) a significant overall impairment to their position, or (b) the threat of such impairment.

(2) Regulations may make provision about what constitutes or does notconstitute significant overall impairment to the position of UK producers, orthe threat of such impairment, for the purposes of this Schedule.

(3) Regulations may make provision about how it is to be determined for thepurposes of this Schedule whether the importation of goods into the UnitedKingdom in increased quantities has caused or is causing serious injury toUK producers of those goods.


Meaning of “UK producers”

3 (1) For the purposes of this Schedule, “UK producers” of particular goodsmeans—

(a) all the producers in the United Kingdom of like goods and all theproducers in the United Kingdom of directly competitive goods, or

(b) those of them whose collective output of like goods and directlycompetitive goods constitutes a major proportion of the totalproduction in the United Kingdom of those goods.

(2) Regulations may make provision for the purposes of sub-paragraph (1)—(a) about what constitutes or does not constitute—

(i) a producer in the United Kingdom of like goods or directlycompetitive goods;

(ii) such a producer’s output of like goods or directlycompetitive goods;

(iii) the total production in the United Kingdom of like goods anddirectly competitive goods;

(iv) a major proportion of that total production;(b) about how any of those matters are to be determined.

(3) See paragraphs 4 and 5 for the meaning of “like goods” and “directlycompetitive goods”.

Meaning of “like goods”

4 (1) For the purposes of this Schedule, “like goods”, in relation to goods,means—

(a) goods which are like those goods in all respects, and(b) goods which, although not alike in all respects, have characteristics

closely resembling those of the goods in question.

(2) Regulations may make provision about—(a) what constitutes or does not constitute “like goods” for the purposes

of this Schedule;(b) how “like goods” is to be determined for those purposes.

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Meaning of “directly competitive goods”

5 Regulations may make provision about—(a) what constitutes or does not constitute “directly competitive goods”

for the purposes of this Schedule;(b) how “directly competitive goods” is to be determined for those

purposes.

PART 2

SAFEGUARDING INVESTIGATIONS

Safeguarding investigation

6 (1) The TRA may investigate—(a) whether goods have been or are being imported into the United

Kingdom in increased quantities, and(b) whether the importation of the goods in increased quantities has

caused or is causing serious injury to UK producers of those goods.

(2) References in this Schedule to a “safeguarding investigation” are to aninvestigation under sub-paragraph (1).

Initiation of a safeguarding investigation

7 (1) The TRA may initiate a safeguarding investigation in relation to goods onlyif—

(a) it is requested to initiate an investigation in an application made— (i) by or on behalf of UK producers of the goods (“the applicant

UK producers”), or (ii) by the Secretary of State,

(b) it is satisfied that the application contains sufficient evidence that—(i) the goods have been or are being imported into the United

Kingdom in increased quantities, and (ii) the importation of the goods in increased quantities has

caused or is causing serious injury to UK producers of thosegoods,

(c) the market share requirement is met or the TRA waives therequirement in relation to the application, and

(d) the application is accompanied by a preliminary adjustment plan.

(2) The market share requirement is met if— (a) in the case of an application under sub-paragraph (1)(a)(i), the TRA

is satisfied that the applicant UK producers have a share of themarket for like goods and directly competitive goods forconsumption in the United Kingdom (whether produced there orelsewhere) which is sufficient to justify initiating the investigation;

(b) in the case of an application under sub-paragraph (1)(a)(ii), the TRAis satisfied that UK producers of the goods have a share of the marketfor like goods and directly competitive goods for consumption in theUnited Kingdom (whether produced there or elsewhere) which issufficient to justify initiating the investigation.

(3) A preliminary adjustment plan is—

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(a) in the case of an application under sub-paragraph (1)(a)(i), a plansetting out how the applicant UK producers think they might be ableto adjust to the importation of the goods in increased quantities;

(b) in the case of an application under sub-paragraph (1)(a)(ii), a plansetting out how UK producers of the goods might be able to adjust tothe importation of the goods in increased quantities.

(4) Regulations may make provision about—(a) what constitutes or does not constitute an application made by or on

behalf of UK producers for the purposes of sub-paragraph (1)(a)(i);(b) when an application is made for the purposes of sub-paragraph

(1)(a);(c) the information to be contained in such an application;(d) the time limit for determining such an application;(e) the form and content of a preliminary adjustment plan;(f) what constitutes or does not constitute “the market for like goods

and directly competitive goods for consumption in the UnitedKingdom” and UK producers’ “share” of that market for thepurposes of sub-paragraphs (1)(c) and (2);

(g) how any of those matters are to be determined for the purposes ofsub-paragraphs (1)(c) and (2).

(5) If any of the requirements of sub-paragraph (1)(a) to (d) in respect of asafeguarding investigation are not met, the TRA must reject the applicationand notify the applicant accordingly (unless it is the requirement in sub-paragraph (1)(a) that is not met because the application has beenwithdrawn).

(6) If the requirements of sub-paragraph (1)(a) to (d) in respect of asafeguarding investigation are met, the TRA must—

(a) accept the application and initiate the investigation,(b) publish notice of its decision to initiate the investigation (including

notice of the goods which are the subject of the investigation), and(c) notify the Secretary of State and interested parties (see paragraph

29(3)) accordingly.

(7) Notices under sub-paragraph (6)(b) and (c) must specify the date of theinitiation of the investigation.

Conduct of a safeguarding investigation

8 (1) Regulations may make provision about the conduct of a safeguardinginvestigation.

(2) Paragraph 10(2) of Schedule 4 applies to regulations under sub-paragraph(1) in relation to a safeguarding investigation as it applies to regulationsunder paragraph 10(1) of that Schedule in relation to a dumping or asubsidisation investigation.

Provisional affirmative determinations and final affirmative or negative determinations

9 (1) In the case of a safeguarding investigation, an “affirmative determination”in relation to goods means a determination that—

(a) the goods have been or are being imported into the United Kingdomin increased quantities, and

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(b) the importation of the goods in increased quantities has caused or iscausing serious injury to UK producers of those goods.

(2) At any stage during a safeguarding investigation, the TRA may make anaffirmative determination, based on the evidence then before it, in relationto goods which are the subject of the investigation (referred to in thisSchedule as “a provisional affirmative determination”).

(3) But the TRA may only make such a determination if it is satisfied thatinterested parties (see paragraph 29(3)) have been given an adequateopportunity to provide information to it regarding the investigation.

(4) The TRA must make a final determination in relation to each of the goodswhich are the subject of a safeguarding investigation.

(5) A final determination under sub-paragraph (4) in relation to goods is—(a) an affirmative determination (referred to in this Schedule as a “final

affirmative determination”), or(b) if the TRA determines that it cannot make an affirmative

determination in relation to the goods, a negative determination(referred to in this Schedule as a “final negative determination”).

(6) The TRA may make different final determinations in relation to differentgoods which are the subject of the investigation.

(7) The TRA must—(a) publish notice of its final negative determination or final negative

determinations under sub-paragraph (4), and(b) notify the Secretary of State and interested parties accordingly.

Termination of a safeguarding investigation

10 A safeguarding investigation in relation to goods terminates (if it has notalready terminated by virtue of provision made under paragraph 8(1))—

(a) in a case where the TRA makes a final negative determination inrelation to the goods, when notice of that determination is publishedunder paragraph 9(7)(a),

(b) in a case where the TRA makes a final affirmative determination inrelation to the goods and determines that there is not arecommendation which it could make under paragraph 14(3) inrelation to them, when notice of that determination is publishedunder paragraph 14(10)(b),

(c) in a case where the TRA makes a final affirmative determination inrelation to the goods and makes a recommendation under paragraph14(3) in relation to them which the Secretary of State rejects, when thenotice of rejection is published under paragraph 17(3)(a) or 18(3)(a),or

(d) in a case where the TRA makes a final affirmative determination inrelation to the goods and makes a recommendation under paragraph14(3) in relation to them which the Secretary of State accepts, at theend of the day of publication of the public notice under section 13giving effect to the recommendation.

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PART 3

PROVISIONAL REMEDY: PROVISIONAL SAFEGUARDING AMOUNT

TRA’s duty to recommend a provisional safeguarding amount

11 (1) This paragraph applies where the TRA makes a provisional affirmativedetermination in relation to goods which are the subject of a safeguardinginvestigation.


(3) The TRA may recommend to the Secretary of State—(a) that an additional amount of import duty (referred to in this

Schedule as a “provisional safeguarding amount”) should beapplicable for a specified period to all the relevant goods, and

(b) how a provisional safeguarding amount applicable to those goodsshould be determined.

(4) The TRA may make a recommendation under sub-paragraph (3) only if it issatisfied that the application of a provisional safeguarding amount inaccordance with its recommendation—

(a) is necessary to prevent serious injury which it would be difficult torepair from being caused during the investigation to UK producersof the goods, and

(b) meets the economic interest test (see paragraph 21).

(5) If the TRA determines that there is one, or more than one, recommendationwhich it could make under sub-paragraph (3), it must make therecommendation or one of those recommendations.

(6) If the TRA determines that there is no recommendation which it could makeunder sub-paragraph (3), it must—

(a) publish notice of its provisional affirmative determination in relationto the goods,



TRA’s recommendations about a provisional safeguarding amount

12 (1) This paragraph applies to a recommendation by the TRA under paragraph11(3) in relation to goods.

(2) The specified period referred to in paragraph 11(3)(a)—(a) must not exceed 200 days, and(b) if the recommendation is accepted by the Secretary of State, must

begin on the day after the date of publication of the public noticeunder section 13 giving effect to the recommendation.

(3) The recommendation referred to in paragraph 11(3)(b) as to how aprovisional safeguarding amount applicable to goods should be determinedmay be by reference to either or both of the following—

(a) the value of the goods, and

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(b) the weight or volume of the goods or any other measure of theirquantity or size.

(4) But that recommendation must be such that a provisional safeguardingamount applicable to goods does not exceed the amount which the TRA issatisfied is necessary to prevent serious injury which it would be difficult torepair from being caused during the investigation to UK producers of thegoods.

(5) Regulations may make provision for the purposes of sub-paragraph (4)about how the amount which the TRA is satisfied is necessary to prevent theserious injury described in that provision is to be determined.

(6) A recommendation under paragraph 11(3) must include such other contentas regulations may require.

Secretary of State’s power to accept or reject a recommendation

13 (1) If the TRA makes a recommendation under paragraph 11(3), the Secretary ofState must decide whether to accept or reject the recommendation.


(a) the application of a provisional safeguarding amount to goods inaccordance with the recommendation does not meet the economicinterest test (see paragraph 21), or


(3) If the recommendation is rejected, the Secretary of State must—(a) publish notice of the TRA’s provisional affirmative determination in




(4) If the recommendation is accepted, the Secretary of State—(a) must publish notice of the TRA’s provisional affirmative

determination in relation to the goods, of the recommendation andof the acceptance of it,



(5) For the purposes of this Schedule, “the period of a provisional remedy” inrespect of goods means the period for which a provisional safeguardingamount applies to the goods.

(6) The period of a provisional remedy in respect of goods ceases (if it has notalready expired) when the safeguarding investigation in relation to thegoods terminates.

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PART 4

DEFINITIVE REMEDIES: DEFINITIVE SAFEGUARDING AMOUNT & TARIFF RATE QUOTAS

TRA’s duty to recommend a definitive safeguarding amount or tariff rate quota

14 (1) This paragraph applies where the TRA makes a final affirmativedetermination in relation to goods which are the subject of a safeguardinginvestigation.


(3) The TRA may recommend to the Secretary of State—(a) that an additional amount of import duty (referred to in this

Schedule as a “definitive safeguarding amount”) should beapplicable for a specified period to all the relevant goods or tospecified relevant goods;

(b) that all the relevant goods, or specified relevant goods, should besubject to a quota for a specified period during which a lower rate ofimport duty should be applicable to imports of goods within theamount of the quota than is applicable to imports of goods outsidethe amount of the quota (referred to in this Schedule as a “tariff ratequota”).

(4) Where the TRA makes a recommendation under sub-paragraph (3)(a) inrelation to relevant goods it must, as part of the recommendation,recommend to the Secretary of State how a definitive safeguarding amountapplicable to those goods should be determined.

(5) The TRA may make a recommendation under sub-paragraph (3) only if it issatisfied that—

(a) applying a definitive safeguarding amount to relevant goods, ormaking relevant goods subject to a tariff rate quota, in accordancewith its recommendation meets the economic interest test (seeparagraph 21), and

(b) there is in place an adjustment plan setting out how UK producers ofthe relevant goods intend to adjust to the importation of the goods inincreased quantities.

(6) Regulations may make provision about the form and content of anadjustment plan.

(7) The TRA may only make a recommendation under one or other ofparagraphs (a) and (b) of sub-paragraph (3) in relation to any particularrelevant good.

(8) The TRA may make a recommendation under paragraph (a) or (b) of sub-paragraph (3) in relation to specified relevant goods (rather than all therelevant goods) only if the recommendations which it makes under that sub-paragraph, when taken together, cover all the relevant goods.

(9) If the TRA determines that there are one or more recommendations which itcould make under sub-paragraph (3) in relation to all the relevant goods, orthat there are one or more recommendations which it could make under sub-paragraph (3) in relation to specified relevant goods, it must make that

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recommendation or one of those recommendations (subject to sub-paragraphs (7) and (8)).

(10) If the TRA determines that there is no recommendation which it could makeunder sub-paragraph (3) it must—

(a) publish notice of its final affirmative determination in relation to thegoods,



TRA’s recommendations about a definitive safeguarding amount

15 (1) This paragraph applies to a recommendation by the TRA under paragraph14(3)(a) in relation to goods.

(2) The specified period referred to in paragraph 14(3)(a)—(a) must be such period as the TRA is satisfied is necessary—

(i) to remove the serious injury, or to prevent further seriousinjury, caused by the importation of the goods in increasedquantities to UK producers of the goods, and

(ii) to facilitate the adjustment of those UK producers to theimportation of the goods in increased quantities,


(c) if the recommendation is accepted by the Secretary of State, mustbegin on the day after the date of publication of the public noticeunder section 13 giving effect to the recommendation.

(3) A recommendation under paragraph 14(3)(a) as to how a definitivesafeguarding amount applicable to goods should be determined (seeparagraph 14(4)) may be by reference to either or both of the following—


quantity or size.

(4) But that recommendation must be such that— (a) a definitive safeguarding amount applicable to goods does not

exceed the amount which the TRA is satisfied is necessary—(i) to remove serious injury to UK producers of the goods, and

(ii) to facilitate the adjustment of those UK producers to theimportation of the goods in increased quantities, and

(b) where the specified period referred to in paragraph 14(3)(a) exceeds1 year, a definitive safeguarding amount applicable to goodsbecomes progressively smaller as the period progresses.

(5) Regulations may make provision for the purposes of sub-paragraph (4)(a)about how the amount which the TRA is satisfied is necessary for thepurposes mentioned is to be determined.

(6) A recommendation under paragraph 14(3)(a) must include such othercontent as regulations may require.

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(7) If a provisional safeguarding amount has been applied to some or all of thegoods as part of the same safeguarding investigation, sub-paragraph (8)applies for the purposes of sub-paragraphs (2)(b) and (4)(b).Those of the goods to which a provisional safeguarding amount has beenapplied are referred to as “the provisional goods”.

(8) The length of the specified period referred to in paragraph 14(3)(a), so far asrelating to the provisional goods, is to be treated as extended by the lengthof the specified period for which the TRA recommended that a provisionalsafeguarding amount should be applied to them.

(9) Where the application of sub-paragraph (8) results in the length of thespecified period referred to in paragraph 14(3)(a), so far as relating to theprovisional goods, exceeding 1 year, sub-paragraph (4)(b) is to be read as ifreferences to goods were references to the provisional goods.

TRA’s recommendations regarding tariff rate quotas

16 (1) This paragraph applies to a recommendation by the TRA under paragraph14(3)(b) in relation to goods.

(2) The specified period referred to in paragraph 14(3)(b)—(a) must be such period as the TRA is satisfied is necessary—

(i) to remove the serious injury, or to prevent further seriousinjury, caused by the importation of the goods in increasedquantities to UK producers of the goods, and

(ii) to facilitate the adjustment of those UK producers to theimportation of the goods in increased quantities,


(c) if the recommendation is accepted by the Secretary of State, mustbegin on the day after the date of publication of the public noticeunder section 13 giving effect to the recommendation.

(3) The recommendation must (in addition to the specified period) include—(a) the TRA’s recommendation regarding—

(i) the amount of the quota,(ii) how the quota should be allocated, and

(iii) the rates of import duty that should be applied to goodssubject to the quota, and

(b) such other content as regulations may require.

(4) The TRA must consult the Secretary of State before making arecommendation regarding the allocation of the quota.

(5) The things recommended by the TRA by virtue of sub-paragraph (3)(a)—(a) must be such as the TRA is satisfied are necessary—

(i) to remove serious injury to UK producers of the goods, and(ii) to facilitate the adjustment of those UK producers to the

importation of the goods in increased quantities, and(b) where the specified period referred to in paragraph 14(3)(b) exceeds

1 year, must be such that the amount of import duty applicable togoods subject to the quota becomes progressively smaller as the

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period progresses (whether by increases in the amount of the quota,decreases in the rates of import duty, or both).

(6) Regulations may make provision for the purposes of sub-paragraph (5)(a)about how the things which the TRA is satisfied are necessary for thepurposes mentioned are to be determined.

(7) If a provisional safeguarding amount has been applied to some or all of thegoods as part of the same safeguarding investigation, sub-paragraph (8)applies for the purposes of sub-paragraphs (2)(b) and (5)(b).Those of the goods to which a provisional safeguarding amount has beenapplied are referred to as “the provisional goods”.

(8) The length of the specified period referred to in paragraph 14(3)(b), so far asrelating to the provisional goods, is to be treated as extended by the lengthof the specified period for which the TRA recommended that a provisionalsafeguarding amount should be applied to them.

(9) Where the application of sub-paragraph (8) results in the length of thespecified period referred to in paragraph 14(3)(b), so far as relating to theprovisional goods, exceeding 1 year, sub-paragraph (5)(b) is to be read as ifreferences to goods were references to the provisional goods.

Secretary of State’s power to apply a definitive safeguarding amount

17 (1) If the TRA makes a recommendation under paragraph 14(3)(a) that adefinitive safeguarding amount should be applicable to goods, the Secretaryof State must decide whether to accept or reject the recommendation.


(a) the application of a definitive safeguarding amount to goods inaccordance with the recommendation does not meet the economicinterest test (see paragraph 21), or










(5) See paragraphs 19 and 20 for variation or revocation of the application of adefinitive safeguarding amount.

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Secretary of State’s power to subject goods to a tariff rate quota

18 (1) If the TRA makes a recommendation under paragraph 14(3)(b) that goodsshould be subject to a tariff rate quota, the Secretary of State must decidewhether to accept or reject the recommendation.


(a) making goods subject to a tariff rate quota in accordance with therecommendation does not meet the economic interest test (seeparagraph 21), or










(5) See paragraphs 19 and 20 for variation or revocation of a tariff rate quota.

Reviews

19 (1) Regulations may make provision for, or in connection with, reviews by theTRA of the continuing application of a definitive safeguarding amount orthe continuation of a tariff rate quota.

(2) References in this paragraph to “a review” are to a review by virtue ofprovision made under sub-paragraph (1).

(3) Regulations under sub-paragraph (1) may, among other things, provide fora review to consider—

(a) whether the continuing application of a definitive safeguardingamount, or the continuation of a tariff rate quota, is necessary—

(i) to remove the serious injury, or to prevent further seriousinjury, caused by the importation of the goods in increasedquantities to UK producers of the goods, or

(ii) to facilitate the adjustment of those UK producers to theimportation of the goods in increased quantities;

(b) whether serious injury to UK producers of the goods would be likelyto continue or recur if the application of a definitive safeguardingamount were to expire or be varied or revoked or if a tariff rate quotawere to expire or be varied or revoked;

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(c) whether replacing the application of a definitive safeguardingamount with a tariff rate quota, or replacing a tariff rate quota withthe application of a definitive safeguarding amount, would bettermeet the aim of—

(i) removing serious injury to UK producers of the goods, or (ii) facilitating the adjustment of those UK producers to the

importation of the goods in increased quantities;(d) whether the adjustment plan referred to in paragraph 14(5)(b) is

being complied with.

(4) Regulations under sub-paragraph (1) may, among other things, make—(a) provision for the TRA to investigate certain matters;(b) provision for the period for which a definitive safeguarding amount

applies to goods by public notice under section 13, or for whichgoods are subject to a tariff rate quota by public notice under thatsection, to be treated as continuing (where it would otherwise ceaseto do so) while a review is ongoing;

(c) other provision about the conduct of a review.

(5) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-paragraph (4)(c) in relation to a review as it applies to regulations underparagraph 10(1) of that Schedule in relation to a dumping or a subsidisationinvestigation.

(6) Regulations may make provision for or in connection with—(a) the TRA recommending to the Secretary of State that—

(i) the application of a definitive safeguarding amount to goodsshould be varied, revoked or replaced with a tariff rate quota,or

(ii) a tariff rate quota to which goods are subject should bevaried, revoked or replaced with the application of adefinitive safeguarding amount, and


(7) Where, by virtue of provision made under sub-paragraph (6), the Secretaryof State accepts a recommendation that the application of a definitivesafeguarding amount to goods, or a tariff rate quota to which goods aresubject, should be varied or revoked, the Secretary of State—




(8) The variation of the application of a definitive safeguarding amount togoods which the TRA may recommend to the Secretary of State by virtue ofregulations under sub-paragraph (6) may take the form of one or both of thefollowing—

(a) varying the period for which a definitive safeguarding amount isapplicable (including extending it beyond the period referred to inparagraph 15(2)(b));

(b) varying how a definitive safeguarding amount should bedetermined such that a lower amount of import duty is applicable.

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(9) The variation of a tariff rate quota which the TRA may recommend to theSecretary of State by virtue of regulations under sub-paragraph (6) may takethe form of one or more of the following—

(a) increasing the amount of the quota;(b) varying the allocation of the quota;(c) reducing the rates of import duty that apply to goods subject to the

quota;(d) reducing the part of the period for which the amount of the quota is

lower or for which import duty at a higher rate applies (so that theamount of the quota is increased, or import duty applies at a lowerrate, more quickly);

(e) varying the period for which goods are subject to the quota(including extending it beyond the period referred to in paragraph16(2)(b)).

(10) Where, by virtue of provision made under sub-paragraph (6), the Secretaryof State accepts a recommendation that, for the first time, a definitivesafeguarding amount should be applicable to goods or goods should besubject to a tariff rate quota, the Secretary of State—




Variation or revocation following an international dispute decision


of a definitive safeguarding amount to goods, or a tariff rate quota towhich goods are subject, should be varied or revoked in light of aninternational dispute decision, and


(2) The regulations may, among other things—(a) provide for the TRA to investigate certain matters for the purposes

of determining whether to make a recommendation to the Secretaryof State and what to recommend;

(b) make provision about the conduct of such an investigation;(c) provide for the suspension, by public notice given by the Secretary

of State, of the application of a definitive safeguarding amount or themaking of goods subject to a tariff rate quota.

(3) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-paragraph (2)(b) in relation to such an investigation as it applies toregulations under paragraph 10(1) of that Schedule in relation to a dumpingor a subsidisation investigation.

(4) Where, by virtue of provision made under the regulations, the Secretary ofState accepts a recommendation that the application of a definitivesafeguarding amount to goods, or a tariff rate quota to which goods aresubject, should be varied or revoked, the Secretary of State—


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(5) Paragraph 19(8) and (9) apply for the purposes of regulations under thisparagraph as they apply for the purposes of regulations under paragraph19(6).

(6) An “international dispute decision” means—(a) a report of a panel or Appellate Body that is adopted by the Dispute

Settlement Body of the WTO, or(b) if not within paragraph (a), a decision under the dispute settlement

procedures of an arrangement relating to trade to which HerMajesty’s government in the United Kingdom is a party with thegovernment of a foreign country or territory.

PART 5

SUPPLEMENTARY

The economic interest test

21 (1) This paragraph applies if the TRA or the Secretary of State is considering, forthe purposes of this Schedule, whether the TRA or the Secretary of State issatisfied that the application of a safeguarding remedy meets or does notmeet the economic interest test.

(2) The economic interest test is met in relation to the application of asafeguarding remedy if the application of the remedy is in the economicinterest of the United Kingdom.

(3) When considering whether or not the application of a safeguarding remedyis in the economic interest of the United Kingdom, the TRA or the Secretaryof State must—

(a) take account of the following so far as relevant—(i) the economic significance of affected industries and

consumers in the United Kingdom,(ii) the likely impact on affected industries and consumers in the

United Kingdom,(iii) the likely impact on particular geographic areas, or particular

groups, in the United Kingdom, and(iv) the likely consequences for the competitive environment, and

for the structure of markets for goods, in the UnitedKingdom, and

(b) take account of such other matters as the TRA or, as the case may be,the Secretary of State considers relevant.

(4) In this paragraph—(a) references to the application of a safeguarding remedy are to—

(i) applying a provisional safeguarding amount or a definitivesafeguarding amount to goods, or

(ii) making goods subject to a tariff rate quota;(b) “affected industries and consumers” means industries and

consumers that would be affected if the safeguarding remedy were,or were not, to be applied;

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(c) “industries” includes—(i) producers and suppliers of goods or services, and

(ii) importers, distributors and retailers of goods;(d) “consumers” includes users of goods or services.

Suspension of safeguarding remedies


of a safeguarding remedy should be suspended, and(b) the Secretary of State accepting or rejecting such a recommendation.

(2) The regulations must secure that the TRA may make such arecommendation to the Secretary of State only if the TRA is satisfied thatmarket conditions have temporarily changed such that the serious injurycaused to UK producers of the goods would be unlikely to recur as a resultof the suspension.

(3) Regulations may make provision for the purposes of sub-paragraph (2)about what constitutes or does not constitute “market conditions” or atemporary change in such conditions.

(4) Regulations under sub-paragraph (1) may, among other things, make—(a) provision for the TRA to investigate certain matters;(b) provision about the conduct of such an investigation;(c) provision about the period for which a suspension may have effect;(d) provision about whether that period counts towards the period for

which the suspended remedy applies.

(5) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-paragraph (4)(b) in relation to an investigation as it applies to regulationsunder paragraph 10(1) of that Schedule in relation to a dumping or asubsidisation investigation.

(6) Where, by virtue of provision made under sub-paragraph (1), the Secretaryof State accepts a recommendation that the application of a safeguardingremedy should be suspended, the Secretary of State—




(7) References in this paragraph to the application of a safeguarding remedyhave the same meaning as in paragraph 21.

Exceptions

23 (1) For the purpose of giving effect to arrangements between Her Majesty’sgovernment in the United Kingdom and the government of a foreigncountry or territory, regulations may make provision excepting goodsoriginating from a specified foreign country or territory from the applicationof this Schedule, or from specified provision made by or under it.

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(2) Regulations may make provision requiring goods originating from aspecified foreign country or territory or description of foreign country orterritory to be excepted from the goods in relation to which the TRA maymake a recommendation under provision made by or under this Schedule.

Restrictions on successive safeguarding remedies

24 (1) This paragraph applies if—(a) the TRA makes a recommendation under paragraph 14(3) that a

definitive safeguarding amount should be applicable to goods orthat goods should be subject to a tariff rate quota, and

(b) a definitive safeguarding amount has previously been applied tothose goods, or they have previously been subject to a tariff ratequota, as a result of an earlier recommendation made by the TRAunder that paragraph.

(2) In this paragraph, references to the “previous safeguarding remedy”, inrelation to goods, are to—

(a) the most recent application of a definitive safeguarding amount tothe goods, or

(b) the tariff rate quota to which the goods were most recently subject.

(3) The Secretary of State may not accept the recommendation if the period forwhich a definitive safeguarding amount would be applicable to the goods,or for which the goods would be subject to a tariff rate quota, would (byvirtue of paragraph 15(2)(c) or 16(2)(c)) begin before the end of the restrictedperiod. This is subject to sub-paragraph (5).

(4) The restricted period means—(a) such period, beginning with the day after the date on which the

period of the previous safeguarding remedy ended, as is equal to theperiod of that previous safeguarding remedy, or

(b) if it would result in a period of a greater length than the periodreferred to in paragraph (a), the period of two years beginning withthe day after the date on which the period of the previoussafeguarding remedy ended.

(5) Sub-paragraph (3) does not prevent the Secretary of State from accepting therecommendation if—

(a) the specified period referred to in paragraph 14(3)(a) or, as the casemay be, paragraph 14(3)(b) (“the recommended period”) does notexceed 180 days,

(b) the date on which the period of the previous safeguarding remedybegan is at least 1 year before the date on which the recommendedperiod would (by virtue of paragraph 15(2)(c) or 16(2)(c)) begin, and

(c) no more than 2 notices have been published under paragraph17(4)(a) or 18(4)(a) in relation to the goods in the period of 5 yearsending with the day before the date on which the recommendedperiod would begin.

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Interaction with anti-dumping remedies and anti-subsidy remedies

25 In determining for the purposes of any provision of this Schedule, or ofregulations made under it, what is necessary to prevent or remove seriousinjury to UK producers of particular goods, the TRA must take account of—

(a) any requirement to give a guarantee in respect of the goods whichapplies under paragraph 15 of Schedule 4,

(b) any application of an anti-dumping amount or a countervailingamount to the goods under section 13, and

(c) any undertaking which has been accepted in respect of the goodsunder provision made by or under Part 5 of Schedule 4.

Investigations regarding repayments

26 (1) Regulations may provide for the TRA to investigate specified matters for thepurpose of determining whether—

(a) a repayment of a provisional safeguarding amount or a definitivesafeguarding amount,

(b) the repayment of an amount of import duty charged by virtue ofprovision made under section 13 in respect of goods which aresubject to a tariff rate quota, or

(c) the repayment of interest paid in respect of any such amounts,should be made under regulations made under paragraph 10 of Schedule 6.

(2) The regulations may make provision about the conduct of any suchinvestigation.

(3) Paragraph 10(2) of Schedule 4 applies to those regulations in relation to suchan investigation as it applies to regulations under paragraph 10(1) of thatSchedule in relation to a dumping or a subsidisation investigation.

Reconsideration, reviews and appeals

27 Regulations may make provision for or in connection with—(a) the reconsideration by the TRA of decisions made by the TRA under

provision made by or under this Schedule, and(b) the review or appeal of decisions made by the TRA or the Secretary

of State under provision made by or under this Schedule.

Notices

28 (1) Where a notice is required to be published or given by a provision made byor under this Schedule, regulations may make provision about—

(a) the form of the notice;(b) its content;(c) the manner of publication;(d) the means by which it is given;(e) the time or date on which it is published or given or is to be treated

as published or given.

(2) Such regulations may, among other things, provide—(a) for some of the content of the notice to be contained in a separate

report to which the notice refers, and

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(b) for that report to be published or for it to be given, or otherwise madeavailable to, the persons to whom the notice is required to be given.

(3) The provision made by regulations under this paragraph about the contentof a notice is in addition to any such provision made by or under any otherprovision of this Schedule.

(4) Sub-paragraph (1)(c) does not apply to a public notice under provision madeunder paragraph 20(2)(c) (see section 37(5)).

Interpretation

29 (1) In this Schedule—“definitive safeguarding amount” has the meaning given by paragraph

14(3)(a);“directly competitive goods” has the meaning given by paragraph 5;“final affirmative determination”, in relation to goods, has the meaning

given by paragraph 9(5)(a);“final negative determination”, in relation to goods, has the meaning

given by paragraph 9(5)(b);“foreign country or territory” means a country or territory outside the

United Kingdom;importation in “increased quantities” has the meaning given by

paragraph 1;“interested parties” has the meaning given by sub-paragraph (3);“like goods”, in relation to goods, has the meaning given by paragraph

4;“the period of a provisional remedy”, in respect of goods, has the

meaning given by paragraph 13(5);“provisional affirmative determination”, in relation to goods, has the

meaning given by paragraph 9(2);“provisional safeguarding amount” has the meaning given by

paragraph 11(3);“regulations” means regulations made by the Secretary of State;“safeguarding investigation” has the meaning given by paragraph 6(2);“serious injury” to UK producers of particular goods has the meaning

given by paragraph 2;“tariff rate quota” has the meaning given by paragraph 14(3)(b);“UK producers”, of particular goods, has the meaning given by

paragraph 3.

(2) References in this Schedule to the economic interest test are to be construedin accordance with paragraph 21.

(3) References in a provision of this Schedule to “interested parties” means thegovernments of such foreign countries or territories, or such other persons,as may be specified in regulations made under this sub-paragraph for thepurposes of the provision in question.

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IMPORT DUTY: NOTIFICATION OF LIABILITY, PAYMENT ETC

Notification of liability to pay import duty

1 A liability of a person to pay import duty may not be enforced unless theperson has been notified of the liability in accordance with the provisionmade by or under this Schedule.

2 (1) If HMRC consider that a person is liable to pay import duty, they mustnotify the person of that fact specifying—

(a) the amount of the duty,(b) the circumstances giving rise to the liability, and(c) the date on or before which the duty must be paid.

(2) The notification may be given in such form and manner as HMRC considerappropriate.

3 (1) HMRC Commissioners may by regulations make provision—(a) specifying cases where it is to be presumed that a person has been

notified under paragraph 2 (including cases where the presumptionmay not be rebutted),

(b) specifying cases in which the duty to notify under paragraph 2 istaken to be met by the doing of some other specified act, or

(c) specifying cases in which neither paragraph 1 nor 2 apply.

(2) Regulations made under sub-paragraph (1)(c)—(a) must contain provision for securing that the existence of a liability to

pay import duty is acknowledged in some other way (for example,by the provision of documents or information to HMRC in which aperson sets out or self-assesses the liability), and

(b) may contain any other provision that HMRC Commissionersconsider appropriate for the purpose of securing the enforceability ofthe liability (for example, by requiring a guarantee to be given inrespect of any liability to import duty).

4 (1) The general rule is that a notification under paragraph 2 of a liability to payimport duty must be given before the end of the period of 3 years beginningwith the day on which the liability was incurred.

(2) If the liability is incurred in circumstances where, in the opinion of anHMRC officer, an offence has been committed (whether or not the offencerelates in any way to import duty), the period of 3 years for notifying isextended to a period of 20 years.

Payment of import duty

5 (1) HMRC Commissioners must make regulations about the payment of importduty.

(2) The regulations may (among other things) make provision about—(a) the date on or before which a liability to pay import duty must be

discharged,(b) cases in which the period for discharging the liability is extended

(either generally or in relation to particular cases),

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(c) how a liability to pay import duty may be discharged, and(d) interest in respect of import duty.

(3) The provision that may be made within sub-paragraph (2)(d) includesprovision—

(a) for interest to be recoverable as if it were an amount due by way ofimport duty,

(b) determining the period during which interest is to be payable,(c) for exceptions from the requirement to pay interest, and(d) about the rate of interest (which may be by reference to a rate payable

by the Bank of England, or by any other person, in respect of anyamount).

Guarantees

6 (1) HMRC Commissioners must make regulations about the giving ofguarantees in respect of any liability to pay import duty.

(2) The provision that may be made by the regulations includes (among otherthings) provision about—

(a) the form of a guarantee,(b) the circumstances in which a guarantee is to be regarded as

discharged (in full or in part), and(c) the steps required to be taken by HMRC officers in cases where the

guarantee is to be enforced or discharged (to any extent).

7 In the case of goods declared for the free-circulation procedure, regulationsunder paragraph 6 must provide that, if a guarantee as to the payment of aliability to import duty is given in accordance with specified conditions, theliability is deferred until such time as is specified.

8 (1) In the case of goods declared for a special Customs procedure, the provisionthat may be made by regulations under paragraph 6 includes provisionrequiring—

(a) a guarantee to be given in respect of a liability to import duty thatmight be incurred in respect of particular goods declared for aspecial Customs procedure, or

(b) a guarantee (a “comprehensive guarantee”) to be given in respect ofa liability to import duty that might be incurred in respect of allgoods declared for a special Customs procedure.

(2) In the case of a comprehensive guarantee, the regulations—(a) must provide that the guarantee is to be given only by persons for the

time being authorised in accordance with the regulations, and(b) may provide for the guarantee to be given in respect of only a portion

of the liability to import duty that might be incurred (as determinedin accordance with the regulations).

(3) Regulations under paragraph 6 may make provision for a guarantee inrespect of any liability to import duty in respect of any goods declared for aspecial Customs procedure to extend also to any liability to import duty inrespect of any goods declared for the free-circulation procedure.

9 For the purposes of paragraphs 6 to 8 any reference to a liability to importduty includes a potential liability to import duty.

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Repayment of import duty

10 (1) HMRC Commissioners must make regulations about—(a) the repayment of import duty, and(b) the repayment of interest paid in respect of import duty,

in specified cases if a claim for the purpose is made and other specifiedconditions are met.

(2) Among other things, the regulations may—(a) make provision about who is entitled to make a claim and the form

of a claim (including provision for the form to be specified in a publicnotice given by HMRC Commissioners),

(b) make provision about the date on or before which a claim must bemade,

(c) make provision as to the evidence which is to be required, or is to besufficient, for the purpose of showing that any of the specifiedconditions are met,

(d) specify how a repayment may be made,(e) require a repayment to be made only if the goods are presented to an

HMRC officer, or a Customs declaration is made, on or before aspecified date,

(f) specify cases in which simple interest is to be payable in respect ofthe repayment of import duty (but not in respect of the repayment ofinterest paid in respect of import duty), and

(g) provide for the recovery of amounts wrongly paid to a person underthe regulations (including provision for the payment of interest onamounts recovered) but only if, at the time at which the person isnotified of the requirement to repay, the original liability to payimport duty could have been enforced.

(3) The provision that may be made as a result of sub-paragraph (2)(f) or (g)includes provision—

(a) for interest to be payable in respect of a period beginning with aspecified date,

(b) for exceptions from the requirement to pay interest, and(c) about the rate of interest (which may be by reference to a rate payable

by the Bank of England, or by any other person, in respect of anyamount).

Remission of import duty

11 HMRC Commissioners may make regulations about the remission of importduty.

Recovery of import duty

12 (1) Any amount due by way of import duty is recoverable as a debt due to theCrown.

(2) If—(a) goods in respect of which a liability to import duty is incurred are

condemned as forfeited, and(b) the goods are not subsequently restored under section 152(b) of

CEMA 1979 or sold by HMRC Commissioners,

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the amount due by way of import duty ceases to be recoverable as a debt dueto the Crown.

(3) If the goods are sold by HMRC Commissioners, the purchaser is liable to paythe debt due to the Crown (in addition to anyone else who is liable apartfrom this sub-paragraph).

(4) This paragraph does not restrict any other way in which import duty may berecovered, whether as a result of CEMA 1979 or any other enactment.


IMPORT DUTY: CONSEQUENTIAL AMENDMENTS

PART 1

REPLACEMENT OF EU CUSTOMS DUTIES

1 (1) Any direct EU legislation, so far as imposing or otherwise applying inrelation to any EU customs duty, that forms part of the law of the UnitedKingdom as a result of section 3 of the European Union (Withdrawal) Act2018 (incorporation of direct EU legislation) ceases to have effect.

(2) Nothing in—(a) any direct EU legislation, or(b) section 4(1) of the European Union (Withdrawal) Act 2018 (saving

for EU rights, powers, liabilities, obligations, restrictions, remediesand procedures),

is to have effect in relation to import duty.

(3) Part 1 of this Act—(a) contains provisions replacing EU customs duties,(b) is not retained EU law, and(c) so far as it contains powers to make or give regulations or public

notices, enables provision to be made of a kind corresponding to thatwhich could previously have been made by the legislation ceasing tohave effect as a result of sub-paragraph (1).

(4) In this paragraph—(a) any reference to EU customs duty includes any EU trade duty,(b) the reference to EU trade duty is to anti-dumping duty,

countervailing duty, safeguard duty and any duty imposed inconsequence of an international dispute, and

(c) the reference to Part 1 of this Act does not include section 29 or thisSchedule.

2 Provision relevant to the law relating to duties of customs and other customsmatters is made by the European Union (Withdrawal) Act 2018: see, forexample, section 2 of that Act (which, among other things, provides forCEMA 1979 to continue to have effect in the law of the United Kingdom).

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Part 2 — Amendments of CEMA 1979

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PART 2

AMENDMENTS OF CEMA 1979

3 CEMA 1979 is amended as follows.

4 (1) Section 1 (interpretation) is amended as follows.

(2) In subsection (1)—(a) omit the definition of “coasting ship”,(b) omit the definition of “Community transit goods”,(c) after the definition of “customs and excise station” insert—

““customs formalities”, in relation to any goods, meansthe requirements made by or under this Act, or by orunder Part 1 of the Taxation (Cross-border Trade) Act2018, that apply in relation to the importation orexportation of the goods;

“customs warehouse” means premises approved underregulations under Schedule 2 to the Taxation (Cross-border Trade) Act 2018 for the purposes of a storageprocedure;”,

(d) in the definition of “excise warehouse”, omit “(whether or not it isalso approved under subsection (2))”,

(e) in the definition of “importer”, for “they are delivered out of charge”substitute “all customs formalities have been complied with inrespect of the goods”,

(f) after the definition of “Queen’s warehouse” insert—““railway customs area” has the meaning given by

section 26(1ZA)(c);”,(g) in the definition of “stores”, for “ship or aircraft” substitute “ship,

aircraft or railway vehicle”,(h) after the definition of “stores” insert—

““temporary storage facility” has the meaning given bysection 25A;”,

(i) in the definition of “transit goods”, for the words from “except in theexpression” to the end substitute “means chargeable goods declaredfor a transit procedure;”,

(j) omit the definition of “transit or transhipment”,(k) omit the definition of “transit shed”,(l) for the definition of “vehicle” substitute—

““vehicle” includes—(a) a ship,(b) an aircraft, and(c) a railway vehicle;

and any reference to goods being in or on board avehicle include their being conveyed by the vehicle(for example, by being on or otherwise attached toit);”,

(m) after that definition insert—““vehicle operator” means—

(a) in the case a ship, the master of the ship,

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(b) in the case of an aircraft, the commander of theaircraft,

(c) in the case of a railway vehicle, the persondesignated as train manager by the personoperating the international service on whichthe railway vehicle is engaged, and

(d) in the case of any other vehicle, the person incharge of the vehicle;”,

(n) omit the definition of “victualling warehouse”, and(o) in the definition of “warehouse”—

(i) omit “or (2) or subsections (1) and (2)”, and(ii) omit “subsection (4) of that section and”.

(3) After subsection (3) insert—

“(3A) Any expression used in this Act or in any instrument made underthis Act to which a meaning is given by Part 1 of the Taxation (Cross-border Trade) Act 2018 has, except where the context otherwiserequires, the same meaning in this Act or any such instrument as inthat Part; and for ease of reference the following is a list of theexpressions concerned—

“the applicable export provisions”“authorised use procedure”“chargeable goods”“Customs declaration” (including any expression relating to a

Customs declaration such as the documents accompanying itor its acceptance)

“Customs procedure” (including expressions relating to aCustoms procedure such as goods being released to ordischarged from the procedure)

“inward processing procedure”“storage procedure”“territory outside the United Kingdom”“temporary admission procedure”“transit procedure”.”

(4) Omit subsection (7).

5 (1) Section 2 (application to hovercraft) is amended as follows.

(2) In subsection (1)—(a) after “ships or vessels” insert “(including references, without more,

to vehicles)”, and(b) for “transit shed” substitute “temporary storage facility”.

(3) In subsection (3), omit ““transhipment”,”.

6 (1) Section 5 (time of importation, exportation, etc) is amended as follows.

(2) In subsection (2)—(a) in the opening words, for “subsections (3)” substitute “subsections

(2A)”, and(b) in paragraph (c), for “are brought across the boundary into Northern

Ireland” substitute “enter the United Kingdom”.

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“(2A) If there is a relevant international arrangement with a country orterritory outside the United Kingdom, the Commissioners may byregulations provide for the time of importation of any goods to be atime—

(a) which is earlier than the times set out in paragraph (a), (b) or(c) of subsection (2), and

(b) which is specified by reference to movement in or out of anarea in the country or territory.

(2B) “Relevant international arrangement” means an arrangementbetween Her Majesty’s government in the United Kingdom and thegovernment of the country or territory which includes provision inrelation to the time at which goods are to be regarded as importedinto the United Kingdom.”


(5) In subsection (4), after “subsections (5)” insert “, (5A)”.


“(5A) If there is a relevant international arrangement with a country orterritory outside the United Kingdom, the Commissioners may byregulations provide for the time of exportation of any goods to be atime—

(a) which is earlier than the times set out in paragraph (a) or (b)of subsection (4), and

(b) which is specified by reference to movement in or out of anarea in the country or territory.

(5B) “Relevant international arrangement” means an arrangementbetween Her Majesty’s government in the United Kingdom and thegovernment of the country or territory which includes provision inrelation to the time at which goods are to be regarded as exportedfrom the United Kingdom.”

(7) In subsection (6), for “or brought across the boundary into Northern Ireland”substitute “or otherwise when they enter the United Kingdom”.

7 Omit section 9 (general duties of Commissioners in relation to customsmatters concerning the European Union).

8 (1) Section 10 (disclosure by Commissioners of certain information as toimported goods) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section does not apply to information the disclosure of which isgoverned by section 25 of the Taxation (Cross-border Trade) Act2018.”

(3) In subsection (2), for “making entry of any goods on their importation,”substitute “notifying the importation of any goods, making a declaration inrespect of the temporary storage of goods, or making a Customs declarationin respect of any goods,”.

9 (1) Section 20 (approval of wharves) is amended as follows.

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(2) In subsection (1), omit “and subject to such conditions and restrictions”.


“(1A) In any case where they consider it would facilitate theadministration, collection or enforcement of any duty of customs, theCommissioners may by regulations—

(a) specify conditions which must be met before an approval isgranted, or

(b) specify other conditions which they may, in any particularcase, require to be met before an approval is granted.

(1B) In any other case, an approval has effect subject to such conditionsand restrictions as the Commissioners think fit.”


10 (1) Section 20A (approved wharves) is amended as follows.

(2) Omit subsection (1)(b) (together with the “or” before it).


“(1A) Any person contravening or failing to comply with any conditionimposed under regulations under section 20(1A) attaching to anapproval by virtue of which a place is an approved wharf is liable onsummary conviction to—

(a) a penalty not exceeding £20,000, or(b) if the contravention or failure to comply is not remedied

before such date as is specified in a notice or further noticegiven to the person by an officer of Revenue and Customs, apenalty not exceeding the sum of £20,000 and the enhancedamount.

(1B) For the purposes of subsection (1A)(b)—(a) “the enhanced amount” means the sum produced by

multiplying £20,000 by the number of notices in respect ofwhich the contravention or failure to comply has not beenremedied by the date specified in the notice,

(b) the date specified in a notice must be one that falls after theend of the period of 14 days beginning with the day on whichthe notice is given, and

(c) if a notice has already been given, a further notice may not begiven on or before the date specified in any earlier notice.”

(4) In subsection (2), after “approved wharf” insert “(other than a conditionimposed under regulations under section 20(1A))”.

11 (1) Section 21 (control of movement of aircraft, etc into and out of the UnitedKingdom) is amended as follows.

(2) Omit subsection (1A).

(3) In subsection (2), for the words from “no person” to “so importing”substitute “no person importing or concerned in importing”.


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12 (1) Section 22 (approval of examination stations at customs and excise airports)is amended as follows.

(2) In subsection (1), omit “and subject to such conditions and restrictions”.







13 (1) Section 22A (examination stations) is amended as follows.

(2) Omit subsection (1)(b) (together with the “or” before it).


“(1A) Any person contravening or failing to comply with any conditionimposed under regulations under section 22(1A) attaching to anapproval by virtue of which a part of, or a place at, a customs andexcise airport is an examination station is liable on summaryconviction to—




multiplying £20,000 by the number of notices in respect ofwhich the contravention or failure to comply has not beenremedied by the date specified in the notice,



(4) In subsection (2), after “examination station” insert “(other than a conditionimposed under regulations under section 22(1A))”.

14 In section 23 (control of movement of hovercraft), in subsection (2), for“transit shed” substitute “temporary storage facility”.

15 In section 24 (control of movement of goods by pipe-line), in subsection(2)(a), for “have not been cleared out of charge” substitute “are subject to the

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control of any officer of Revenue and Customs as a result of Part 1 of theTaxation (Cross-border Trade) Act 2018”.

16 (1) Section 25 (approval of transit sheds) is amended as follows.

(2) In subsection (1)—(a) omit “and subject to such conditions and restrictions”, and(b) for the words from “not yet cleared out of charge” to the end,

substitute “subject to the control of any officer of Revenue andCustoms as a result of Part 1 of the Taxation (Cross-border Trade)Act 2018.”







(5) In subsection (4)—(a) for “entry” substitute “needing to comply with all customs

formalities in relation to the goods”, and(b) for “transit sheds”, in each place, substitute “temporary storage

facilities”.

(6) In the heading, for “transit sheds” substitute “temporary storage facilities”.

17 (1) Section 25A (transit sheds) is amended as follows.

(2) In subsection (1)—(a) in the opening words, for “transit shed” substitute “temporary

storage facility”, and(b) omit paragraph (b) (together with the “or” before it).


“(1A) Any person contravening or failing to comply with any conditionimposed under regulations under section 25(1A) attaching to anapproval by virtue of which a place is a temporary storage facility isliable on summary conviction to—




multiplying £20,000 by the number of notices in respect of

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which the contravention or failure to comply has not beenremedied by the date specified in the notice,



(4) In subsection (2), for “transit shed” substitute “temporary storage facility(other than a condition imposed under regulations under section 25(1A))”.

(5) In subsection (3), for “transit shed”, in both places, substitute “temporarystorage facility”.

(6) For the heading substitute “Temporary storage facilities”.

18 (1) Section 26 (power to regulate movements of goods into and out of NorthernIreland by land) is amended as follows.

(2) In subsection (1), omit the words after paragraph (b).


“(1ZA) The Commissioners may, for the purpose of safeguarding therevenue, by regulations—

(a) apply any provision made by or under this Act so that itapplies in relation to any road or railway vehicle (with orwithout modifications),

(b) provide for any provision made by or under this Act not toapply in relation to any road or railway vehicle, and

(c) make provision for the designation of any area as a railwaycustoms area for the purposes of this Act (referred to in thisAct as a “railway customs area”).

(1ZB) An area may be designated as a railway customs area if it is—(a) a place at which goods are loaded onto or unloaded from, or

passengers board or disembark from, a railway vehiclebefore it departs or enters the United Kingdom, or

(b) an area adjoining such a place.

(1ZC) Regulations under this section may make different provision inrelation to different classes or descriptions of goods and, inparticular, in relation to different classes or descriptions of vehicles.”

(4) In subsection (1A), for “subsection (1) above” substitute “this section”.

(5) In subsection (2), for “subsection (1) above” substitute “this section”.

(6) In the heading, for “Northern Ireland” substitute “United Kingdom”.

19 (1) Section 27 (officers’ powers of boarding) is amended as follows.

(2) In subsection (1)—(a) in the opening words, for “a vehicle” substitute “any other vehicle”,(b) after paragraph (b) insert—

“(ba) within a railway customs area,”,(c) in paragraph (e), for “transit shed,” substitute “temporary storage

facility,”, and

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(d) in the words after paragraph (f), for “the ship, aircraft or vehicle”substitute “the vehicle”.


20 (1) Section 28 (officers’ powers of access, etc) is amended as follows.

(2) In subsection (1)—(a) in the opening words, for “of any vehicle” substitute “of any other

vehicle”, and(b) in paragraphs (a) and (b), for “ship, aircraft or vehicle” substitute

“vehicle”.

(3) In subsection (2), for “ship, aircraft or vehicle” substitute “vehicle”.

21 (1) Section 29 (officers’ powers of detention of ships, etc) is amended as follows.

(2) In subsection (1), for “ship, aircraft or vehicle”, in each place, substitute“vehicle”.

(3) In subsection (2)(a), after “in the case of a ship or vehicle” insert “other thanan aircraft”.

22 (1) Section 30 (control of movement of uncleared goods within or between portor airport and other places) is amended as follows.

(2) In subsection (1), for the words from “moved within” to the end substitute“moved—

(a) within the limits of any port, railway customs area orcustoms and excise airport, or

(b) between any port, railway customs area or customs andexcise airport and any other place.”

(3) In subsection (2), for “have not been cleared out of charge” substitute “aresubject to the control of any officer of Revenue and Customs as a result ofPart 1 of the Taxation (Cross-border Trade) Act 2018”.

(4) In subsection (3)(b), for “ships, aircraft or vehicles” substitute “vehicles”.

23 In section 31 (control of movement of goods to and from inland clearancedepot, etc), in subsection (1)—

(a) in paragraphs (a) and (aa)(i), for “the clearance out of charge of”substitute “the discharge of a Customs procedure in respect of”, and

(b) in paragraph (b), omit “, or a place designated by the proper officerunder section 53(4) or 58(3) below,”.

24 (1) Section 33 (power to inspect aircraft, aerodromes, records, etc) is amendedas follows.

(2) In subsection (1)—(a) in the opening words—

(i) for “commander of an aircraft” substitute “vehicle operator ofa vehicle which is an aircraft or railway vehicle”, and

(ii) for “to board the aircraft” substitute “to board the vehicle”,and

(b) in paragraphs (a) and (b), for “the aircraft” substitute “the vehicle”.

(3) In subsection (2)—

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(a) after “any aerodrome” insert “or railway customs area”, and(b) after “the aerodrome” insert “or railway customs area”.


“(3A) If so required by the Commissioners, the person in control of arailway customs area shall—

(a) keep a record in such form and manner as the Commissionersmay approve of all railway vehicles arriving at or departingfrom the area,

(b) keep that record available and produce it on demand to anyofficer, together with all other documents kept in the areawhich relate to the movement of railway vehicles, and

(c) permit any officer to make copies of and take extracts fromany such record or document.”

(5) In the heading, after “aerodromes,” insert “railway vehicles and customsareas,”.

25 (1) Section 34 (power to prevent flight of aircraft) is amended as follows.

(2) In subsection (1)(b), for “clearance outwards is given” substitute “the aircraftis cleared for departure”.


“(1A) If it appears to any officer or constable—(a) that a railway vehicle is intended or likely to depart for a

destination outside the United Kingdom, and(b) that—

(i) the last place at which goods may be loaded onto orunloaded from, or passengers may board ordisembark from, the vehicle before it leaves theUnited Kingdom is not within a railway customs area,or

(ii) it is intended or likely to depart from a railwaycustoms area before being cleared for departure,

the officer or constable may give such instructions and take suchsteps by way of detention of the vehicle or otherwise as appearnecessary in order to prevent its departure.”

(4) In subsection (2), after “subsection (1)” insert “or (1A)”.

(5) In subsection (3)—(a) after “an aircraft flies” insert “or railway vehicle departs”,(b) after “subsection (1)” insert “or (1A)”,(c) for “or notwithstanding” substitute “or flies or departs

notwithstanding”,(d) after “the flight”, in both places, insert “or departure”, and(e) for “the commander” substitute “the vehicle operator”.

(6) In the heading, after “aircraft” insert “or departure of railway vehicles”.

26 In the italic heading before section 35, for “Inward entry and clearance”substitute “Control of entry of goods”.

27 (1) Section 35 (report inwards) is amended as follows.

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(2) In subsection (1), for “ship and aircraft” substitute “vehicle”.

(3) In subsection (2)(b), for “and not yet cleared on importation” substitute“which have not yet been declared for a Customs procedure”.

(4) In subsection (3)(b)(i) for “and not already cleared at a customs and exciseairport” substitute “without yet having made a Customs declaration”.


“(3A) This section applies to every vehicle (other than a ship or aircraft)arriving, or expected to arrive, at any place in the United Kingdom—

(a) from any place outside the United Kingdom; or(b) carrying any goods brought in the vehicle from a place

outside the United Kingdom which have not yet beendeclared for a Customs procedure.”

(6) In subsection (6)—(a) for “ship, or aircraft” substitute “vehicle”, and(b) for “or flight” substitute “flight, or journey”.

(7) In subsection (7)—(a) for “ship or aircraft” substitute “vehicle”,(b) after “arrives” insert “in the United Kingdom, or”, and(c) for “the master of the ship or commander of the aircraft” substitute

“the vehicle operator”.

(8) In subsection (9), after “in this section” insert “and in section 35A”.

28 After section 35 insert—

“35A Obligation to confirm making of Customs declaration: particular vehicle operators

(1) The Commissioners may by regulations make provision requiring, incases specified in the regulations, a vehicle operator to confirm that,in respect of all goods in the vehicle which are to be imported into theUnited Kingdom—

(a) a Customs declaration has been made in respect of them, or(b) the vehicle operator reasonably believes that a Customs

declaration has been made in respect of them.

(2) The regulations may require the confirmation to be given inaccordance with provision made by the regulations.

(3) A vehicle operator who does not provide a confirmation inaccordance with the regulations is liable on summary conviction to apenalty of level 3 on the standard scale.”

29 Omit section 37A (initial and supplementary entries).

30 Omit section 37B (postponed entry).

31 Omit section 37C (provisions supplementary to ss. 37A and 37B).

32 Omit section 38B (correction and cancellation of entry).

33 In section 39 (entry of surplus stores), before subsection (1) insert—

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“(A1) This section applies only for excise duty purposes.”

34 (1) Section 40 (removal of uncleared goods to Queen’s warehouse) is amendedas follows.

(2) For subsection (1) substitute—

“(1) The proper officer may remove chargeable goods to a Queen’swarehouse in any of the following cases—

(a) where the goods have not been presented to Customs onimport in accordance with Part 1 of the Taxation (Cross-border Trade) Act 2018 within the relevant number of daysfrom the day on which the goods were imported;

(b) where the goods have not been moved to a temporary storagefacility in accordance with paragraph 1 of Schedule 1 to thatAct within the relevant number of days from the day onwhich the goods were required to be so moved;

(c) where a Customs declaration has not been made in respect ofthe goods within the relevant number of days from the dayon which the goods were presented to Customs on import;

(d) where a document which is required to accompany aCustoms declaration is not made available to Her Majesty’sRevenue and Customs within the relevant number of daysfrom the day on which it was required to be made available;

(e) where the 90 day period referred to in paragraph 1 ofSchedule 1 to the Taxation (Cross-border Trade) Act 2018 hasended and the goods have not been released to a Customsprocedure within the relevant number of days from the dayon which that period ended;

(f) where the goods have been released to a Customs procedurebut have not been removed from a temporary storage facilitywithin the relevant number of days from the day on whichthe goods were released to the procedure;

(g) where an officer of Revenue and Customs requires goods tobe made available for examination and the goods are notmade available within 21 days of the requirement beingimposed; or

(h) where goods have been imported by sea and do notconstitute a significant proportion of the ship’s cargo, theyare at any time after the arrival of the importing ship at theport at which they are to be unloaded the only goodsremaining to be unloaded from that ship at that port.”

(3) In subsection (2), for “entry” substitute “compliance with the customsformalities in respect of the goods”.


(i) after “section 99(3) below, if” insert “the relevant customsformalities are not complied with in respect of”, and

(ii) omit “are not cleared by the importer thereof”, and(b) in the words after paragraph (b), for “them” substitute “the goods”.

(5) In subsection (4), for paragraph (a) substitute—“(a) “the relevant number of days” means—

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(i) where the goods have been imported by air, 7 cleardays, and

(ii) in any other case, 14 clear days;”.


“(5) Where any restriction is placed upon the unloading of goods fromany vehicle by virtue of any enactment relating to the prevention ofepidemic and infectious diseases, then, in relation to that vehicle—

(a) “the relevant date” means the date of the removal of therestriction; and

(b) the relevant number of days referred to in any paragraph ofsubsection (1) other than paragraph (d) is counted from theday on which the restriction is removed rather than the dayreferred to within the paragraph concerned.”

(7) In the heading, for “uncleared” substitute “chargeable”.

35 (1) Section 41 (failure to comply with provisions as to entry) is amended asfollows.

(2) For the words from “, any person making entry of goods” to “in connectionwith that entry shall” substitute “—

(a) any person importing goods who contravenes or fails tocomply with any of the requirements made by or under thisPart of this Act, or

(b) any person who contravenes or fails to comply with any ofthe requirements made by or under Part 1 of the Taxation(Cross-border Trade) Act 2018 in connection with thepresentation of goods to Customs on import, the making of adeclaration relating to the storage of goods or the making ofa Customs declaration,

shall”.

(3) Omit the words from “but this section shall not apply to” to the end.

(4) In the heading, for “provisions as to entry” substitute “customs formalities”.

36 (1) Section 42 (power to regulate unloading, removal, etc of imported goods) isamended as follows.

(2) In subsection (1)(a)—(a) after “airport,” insert “any other vehicle entering the United

Kingdom”, and(b) for “Northern Ireland” substitute “the United Kingdom”.


37 (1) Section 43 (duty on imported goods) is amended as follows.

(2) In subsection (1)—(a) omit “or section 2(2) of the European Communities Act 1972 or any

Community regulation or other instrument having the force of law”,and

(b) after “the proper officer any” insert “excise”.

(3) In subsection (2)—(a) in the opening words, omit “customs or”, and

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(b) in paragraph (c)—(i) omit sub-paragraph (i) (together with the “and” at the end of

it), and(ii) in sub-paragraph (ii), omit “as respects other duties,”.

(4) Omit subsections (2A) to (2C).

(5) In subsection (2D), for “any of sections 44 to 48” substitute “section 44”.

(6) In subsection (3)—(a) after “chargeable with the like” insert “excise”, and(b) omit the words from “; and if any question” to the end.

(7) In subsection (5)—(a) after “whether or not any” insert “excise”, and(b) after “purpose of charging” insert “excise”.

(8) In subsection (6)—(a) in the opening words, omit “customs or”,(b) in paragraph (b), omit “customs and”, and(c) in the words after that paragraph, after “rate of the” insert “excise”.

(9) Omit subsections (8) and (9).

(10) In the heading, for “Duty” substitute “Excise duty”.

38 In section 44 (exclusion of s. 43(1) for importers etc keeping standingdeposits), after “to cover any” insert “excise”.

39 Omit section 45 (deferred payment of customs duty).

40 Omit section 46 (goods to be warehoused without payment of duty).

41 Omit section 47 (relief from payment of duty of goods entered for transit ortranshipment).

42 Omit section 48 (relief from payment of duty of goods temporarilyimported).

43 (1) Section 49 (forfeiture of goods improperly imported) is amended as follows.

(2) In subsection (1)—(a) in paragraph (a)—

(i) in the opening words, for “Acts 1979, any imported goods,being goods chargeable on” substitute “Acts 1979 or by orunder the Taxation (Cross-border Trade) Act 2018, anyimported goods, being goods chargeable by reference to”,

(ii) for sub-paragraph (iii) substitute—“(iii) unloaded from any other vehicle

which has entered the UnitedKingdom, or”, and

(iii) in sub-paragraph (iv), for “transit shed” substitute“temporary storage facility or any place specified by anofficer of Revenue and Customs under Part 1 of the Taxation(Cross-border Trade) Act 2018 as a place where the goods arerequired to be kept”,

(b) in paragraph (c), for “any vehicle” substitute “any other vehicle”, and

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(c) for paragraph (e) substitute—“(e) any goods are found, whether before or after being

released to or discharged from a Customs procedure,not to correspond with any information providedunder Part 1 of the Taxation (Cross-border Trade) Act2018;”.

(3) In subsection (2), for paragraphs (a) to (c) substitute—“(a) declared as intended for exportation in the same vehicle,(b) declared for a transit procedure or a storage procedure, or(c) are otherwise to be warehoused for exportation or for use as

stores,”.

44 (1) Section 50 (penalty for improper importation of goods) is amended asfollows.

(2) In subsection (2)—(a) in paragraph (a), for “any vehicle in Northern Ireland” substitute

“any other vehicle which has entered the United Kingdom”, and(b) in paragraph (b), for “transit shed” substitute “temporary storage

facility, any place specified by an officer of Revenue and Customsunder Part 1 of the Taxation (Cross-border Trade) Act 2018 as a placewhere the goods are required to be kept”.

(3) In subsection (6), for paragraph (b) substitute—“(b) directly or indirectly imports, or causes to be imported, any

chargeable goods found, whether before or after beingreleased to a Customs procedure, not to correspond with anyinformation provided under Part 1 of the Taxation (Cross-border Trade) Act 2018,”.

45 In section 51 (special provisions as to proof in Northern Ireland), insubsection (1), for “on their importation”, in both places, substitute “byreference to their importation”.

46 For the italic heading before section 52 substitute “Breach of applicableexport provisions etc”.

47 (1) Section 52 (meaning for this Part of “dutiable or restricted goods”) isamended as follows.

(2) In subsection (1)—(a) for paragraph (a) substitute—

“(a) goods from an excise warehouse or goods which havebeen declared for a storage procedure;”,

(b) in paragraph (c), at the end insert “or goods which have beendeclared for an authorised use procedure or temporary admissionprocedure,”, and

(c) in paragraph (d), at the end insert “or goods otherwise eligible forremission, repayment or refund of duty on their export”.

(3) In subsection (2)—(a) for “means goods” substitute “means—

(a) goods declared for an inward processing procedure,or

(b) goods”, and

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(b) omit “import duty or”.


“52A Breach of applicable export provisions etc

(1) This section applies to any goods the export of which is required tobe made in accordance with the applicable export provisions.

(2) If any person contravenes or fails to comply with any of therequirements—

(a) the person is guilty of an offence, and(b) the goods are liable to forfeiture.

(3) A person guilty of an offence under subsection (2) in a case where thegoods are dutiable or restricted goods is liable on summaryconviction to a penalty of—

(a) £20,000, or(b) three times the value of the goods,

whichever is the greater.

(4) A person guilty of an offence under subsection (2) in any other caseis liable on summary conviction to a penalty of level 4 on thestandard scale.

(5) If—(a) in breach of the applicable export provisions, any dutiable or

restricted goods fail to be exported from the United Kingdomby the time by which they were required to be exported, and

(b) notice of the failure is not immediately given to an officer ofRevenue and Customs,

the goods are (in addition to being liable to forfeiture undersubsection (2)) subject to the control of an officer of Revenue andCustoms as mentioned in subsection (6) even if the procedureprovided for by the applicable export provisions is discharged.

(6) An officer of Revenue and Customs may—(a) require any person to provide such information and

documents to the officer as may be specified by the officer,and

(b) require the goods to be moved to, and kept in, such place asmay be specified by the officer.

(7) Any person who contravenes or fails to comply with a requirementimposed under subsection (6) is liable on summary conviction to apenalty of £20,000.”

49 (1) Section 53 (entry outwards of goods) is amended as follows.

(2) Omit subsections (1) to (7).

(3) In subsection (8)—(a) for “of which entry is required under this section” substitute “which

are required to be exported in accordance with the applicable exportprovisions”, and

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(b) for the words from “before entry has” to “and where” substitute“before the applicable export provisions have been complied with,and”.


50 Omit section 54 (acceptance of incomplete entry).

51 Omit section 55 (correction and cancellation of entry).

52 Omit section 56 (failure to export).

53 Omit section 57 (delivery of entry by owner of exporting ship etc).

54 Omit section 58 (simplified clearance procedure).

55 Omit section 58A (local export control).

56 Omit section 58B (provisions supplementary to ss 58 and 58A).

57 Omit section 58C (pipe-lines and export of ships and aircraft).

58 Omit section 58D (operative date for Community purposes).

59 Omit section 58E (authentication of Community customs documents).

60 (1) Section 59 (restrictions on putting export goods alongside for loading) isamended as follows.

(2) In subsection (1), for the words from “to be entered outwards” to the endsubstitute “to be exported in accordance with the applicable exportprovisions”.

(3) In subsection (2)(a) and (b), for “ship or aircraft” substitute “vehicle otherthan a road vehicle”.

61 In section 60 (additional restrictions as to certain export goods), aftersubsection (1) insert—

“(1A) For the purposes of subsection (1), the reference to entering goods forexportation is to the doing of anything required to be done underprovision made by or under Part 1 of the Taxation (Cross-borderTrade) Act 2018 in connection with the export of the goods.”

62 In section 60A (power to make regulations about stores), in subsection (1),for “ship or aircraft” substitute “ship, aircraft or railway vehicle”.

63 (1) Section 61 (supplementary provision relating to stores) is amended asfollows.

(2) In subsection (5)(b), for “the master or commander and the owner of the shipor aircraft” substitute “the vehicle operator and the owner of the ship,aircraft or railway vehicle”.


(i) for “ship or aircraft” substitute “ship, aircraft or railwayvehicle”,

(ii) for “any port or customs and excise airport for a destinationoutside the United Kingdom” substitute “the UnitedKingdom”, and

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(iii) for “cleared outwards” substitute “cleared for departure”,(b) in paragraph (b), for “ship’s or aircraft’s” substitute “vehicle’s”, and(c) in the words after that paragraph, for “the master of the ship or the

commander of the aircraft” substitute “the vehicle operator”.

(4) In subsection (7A), for “the master of the ship or the commander of theaircraft” substitute “the vehicle operator”.

64 (1) Section 62 (information, documentation, etc as to export goods) is amendedas follows.


(3) In subsection (3), omit “or (2)”.

(4) In subsection (4), omit “or (2)”.

65 (1) Section 63 (entry outwards of exporting ships) is amended as follows.

(2) In subsection (1)—(a) omit “to a place outside the member States”, and(b) for “those States” substitute “the United Kingdom”.

(3) In subsection (2), for “the member States” substitute “the United Kingdom”.

(4) In subsection (7), omit “or the member States”.

66 (1) Section 64 (clearance outwards of ships and aircraft) is amended as follows.


“(1) No vehicle other than a road vehicle is to depart from the UnitedKingdom until clearance for departure has been obtained from theproper officer.”


“(1A) The Commissioners may by regulations make provision disapplyingthe requirement to obtain clearance in specified circumstances.”

(4) In subsection (6)—(a) for “ship or aircraft” substitute “vehicle”, (b) for “departs from any port or customs and excise airport” substitute

“departs from the United Kingdom”, and(c) for “master or commander” substitute “vehicle operator”.

(5) In subsection (7), for the words from “where any aircraft” to “that airport”substitute “where any vehicle is required under this section to obtainclearance to depart the United Kingdom, any goods are loaded, or arewaterborne for loading, into that vehicle”.

(6) In the heading, for “ships and aircraft” substitute “vehicles”.

67 (1) Section 65 (power to refuse or cancel clearance of ship or aircraft) is amendedas follows.

(2) In subsection (1)—(a) in the opening words, after “the Customs and Excise Acts 1979”

insert “or Part 1 of the Taxation (Cross-border Trade) Act 2018”,

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(b) in paragraph (a), for “ship or aircraft” substitute “vehicle required toobtain clearance to depart the United Kingdom,”, and

(c) for paragraph (b) substitute—“(b) where clearance has been given in respect of a vehicle,

any officer may at any time cancel the clearancebefore the vehicle has departed from the UnitedKingdom.”

(3) In subsection (2)—(a) in the opening words, from the beginning to “may be served—”

substitute “Any cancellation may be made orally, electronically orotherwise in writing, and if made in writing (but not electronically)may be served on the vehicle operator—”, and

(b) in paragraph (c), for “ship or aircraft” substitute “vehicle”.


“(3) Where a clearance is cancelled, it forthwith becomes void.”

(5) In the heading, for “ship or aircraft” substitute “vehicle”.

68 In section 66 (power to make regulations as to exportation, etc), in subsection(1)—

(a) in paragraph (a), for “ships and aircraft respectively the loading andmaking waterborne for loading” substitute “vehicles the loading(including making waterborne for loading)”, and

(b) in paragraph (b), for “Northern Ireland” substitute “the UnitedKingdom”.

69 (1) Section 67 (offences in relation to exportation of goods) is amended asfollows.

(2) In subsection (1)—(a) in the opening words, for “ship or aircraft” substitute “vehicle”, and(b) in the words after paragraph (b)—

(i) for “the master of the ship or the commander of the aircraft”substitute “the vehicle operator”, and

(ii) for “ship or aircraft” substitute “vehicle”.

(3) In subsection (4)—(a) in the opening words, omit “or brought to a customs and export

station for exportation by land”,(b) for paragraph (a) substitute—

“(a) goods in an excise warehouse or goods which havebeen declared for a storage procedure;”, and

(c) in paragraph (c), after “not been paid” insert “or goods which havebeen declared for an authorised use procedure or temporaryadmission procedure”.

70 In section 68 (offences in relation to exportation of prohibited or restrictedgoods), in subsection (5)—

(a) for “the ship, aircraft or vehicle in which they were exported”substitute “the vehicle in which they were exported”, and

(b) for “both the owner of the ship, aircraft or vehicle and the master ofthe ship, commander of the aircraft or person in charge of the

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vehicle” substitute “both the owner of the vehicle and the vehicleoperator”.

71 For section 69 substitute—

“69 Meaning of “coasting ship”

(1) In this Part “coasting ship” means any ship for the time beingengaged in the trade of carrying goods coastwise—

(a) between places in the United Kingdom, or(b) between a place in the United Kingdom and a place in the Isle

of Man.

(2) The Commissioners may from time to time give directions as to whattrade by water—

(a) between places in the United Kingdom, or(b) between a place in the United Kingdom and a place in the Isle

of Man,is, or is not, to be deemed to be carrying goods coastwise.”

72 Omit section 70 (coasting trade —exceptional provisions).

73 (1) Section 74 (offences in connection with carriage of goods coastwise) isamended as follows.


(3) In subsection (2), for “sections 69 to 71” substitute “section 71”.


74 Omit section 75A (records relating to importation and exportation).

75 Omit section 75C (records relating to goods subject to certain transitarrangements).

76 (1) Section 77 (information in relation to goods imported or exported) isamended as follows.

(2) In subsection (1)(a), for “an entry is required by regulation 5 of the CustomsControls on Importation of Goods Regulations 1991 or an entry orspecification is required by or under this Act” substitute “a declaration isrequired as a result of Part 1 of the Taxation (Cross-border Trade) Act 2018”.

(3) In subsection (3)—(a) for “entry thereof” substitute “a declaration in respect of the goods”,

and(b) for “declaration”, in each place, substitute “statement”.

(4) In subsection (4), for “entry delivered” substitute “declaration made”.

(5) In subsection (5)(a), for “entry delivered” substitute “declaration made”.

77 Omit section 77C (information powers relating to goods subject to certaintransit arrangements).

78 (1) Section 78 (customs and excise control of persons entering or leaving theUnited Kingdom) is amended as follows.


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(a) in paragraph (b), for “chargeable” substitute “taxable”,(b) in the words after paragraph (b), after “by virtue of” insert “provision

made by regulations under section 19 of the Taxation (Cross-borderTrade) Act 2018 relating to any relief conferred on persons enteringthe United Kingdom or”, and

(c) in the second sentence, for “subsection “chargeable goods” means”substitute “subsection “taxable goods” means”.

(3) Omit subsection (1B).

79 (1) Section 80 (power to require information or production of documents whereorigin of goods exported is evidenced under EU law or practice) is amendedas follows.

(2) In subsection (1), for “Community requirement or practice” substitute“requirement by or under any enactment”.

(3) In the heading, omit “under EU law or practice”.

80 In section 82 (power to haul up revenue vessels, patrol coasts, etc), insubsection (2), after “railway” insert “or railway customs area”.

81 (1) Section 85 (penalty for interfering with revenue vessels, etc) is amended asfollows.

(2) In subsection (1), omit “ship, aircraft,”.

(3) In subsection (2), for “vessel, aircraft or vehicle” substitute “vehicle”.

82 In section 88 (forfeiture of ship, aircraft or vehicle constructed, etc forconcealing goods)—

(a) in paragraph (c), for “a vehicle” substitute “any other vehicle”,(b) in that paragraph, for “any port or at any aerodrome” substitute “any

port, railway customs area or aerodrome”, and(c) in the words after that paragraph, for “or vehicle” substitute “or

other vehicle”.

83 In section 90 (forfeiture of ship or aircraft unable to account for missingcargo)—

(a) after “port in the United Kingdom or the Isle of Man,” insert “arailway vehicle has been within the limits of a railway customs area”,

(b) for “master of the ship or commander of the aircraft” substitute“vehicle operator”, and

(c) for “the ship or aircraft” substitute “the ship, railway vehicle oraircraft”, and

(d) in the heading, after “ship” insert “, railway vehicle”.

84 In section 92 (approval of warehouses), omit subsections (2) to (4).

85 In section 93 (regulation of warehouses and warehoused goods), beforesubsection (1) insert—

“(A1) In their application to warehouses, this section and sections 94, 95, 97and 98 apply only to excise warehouses.”

86 In section 98 (procedure on warehouse ceasing to be approved), for

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subsection (4) substitute—

“(4) In this section “the prescribed period” means the period of 3months.”

87 (1) Section 99 (provisions as to deposit in Queen’s warehouse) is amended asfollows.

(2) In subsection (1), after “the Customs and Excise Acts 1979” insert “or Part 1of the Taxation (Cross-border Trade) Act 2018”.

(3) In subsection (4)—(a) in the opening words, after “the Customs and Excise Acts 1979”

insert “or Part 1 of the Taxation (Cross-border Trade) Act 2018”,(b) in paragraph (a), after “thereon” insert “has been paid”,(c) in paragraph (b), in the words after sub-paragraph (ii), omit the

words from “and, in the case of goods” to the end, and(d) after that paragraph insert “; and

(c) the requirements made by or under Part 1 of theTaxation (Cross-border Trade) Act 2018 have beencomplied with.”



88 (1) Section 100 (general offences relating to warehouses and warehousedgoods) is amended as follows.

(2) In subsection (2)—(a) in paragraph (a), after “any goods which have been” insert “declared

for a storage procedure or”,(b) in paragraph (b), after “any goods which have been” insert “declared

for a storage procedure or”,(c) in paragraph (c), for “ship, aircraft or vehicle” substitute “vehicle”,

and(d) in paragraph (d), after “when they have been” insert “declared for a

storage procedure or”.


“(5) In this section “warehouse”, except in the expression “Queen’swarehouse”, means a customs warehouse or an excise warehouse.”

89 In section 112 (power of entry upon premises, etc of revenue traders), insubsection (5), omit “vessels, aircraft,”.

90 Omit section 119 (delivery of imported goods on giving of security for duty).

91 Omit section 120 (regulations for determining origin of goods).

92 (1) Section 121 (power to impose restrictions where duty depends on certainmatters other than use) is amended as follows.

(2) Omit “(other than the use to be made of the goods)”.

(3) In the heading, omit “other than use”.

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93 Omit section 122 (regulations where customs duty depends on use).

94 In section 123 (repayment of duty where goods returned or destroyed byimporter), in subsection (1)(b)(i), for the words from “and for that purpose”to “this Act;” substitute “and, if the export of the goods was required to bemade in accordance with the applicable export provisions, the requirementswere met;”.

95 (1) Section 124 (forfeiture for breach of certain conditions) is amended asfollows.

(2) In subsection (1)(a), for “on” substitute “by reference to”.

(3) In subsection (2), for “or security”, in both places, substitute “, security orother guarantee”.

96 Omit section 125 (valuation of goods for purpose of ad valorem duties).

97 (1) Section 129 (power to remit or repay duty on denatured goods) is amendedas follows.

(2) In subsection (1)—(a) omit paragraph (a) (together with the “or” at the end of it),(b) in paragraph (b), for “a duty” substitute “a duty of excise”, and(c) in the words following that paragraph, for “duty”, in both places,

substitute “duty of excise”.

(3) In subsection (1A)—(a) for “chargeable with a duty” substitute “chargeable with a duty of

excise”, and(b) omit “, in the application of that section in relation to a duty of

excise,”.


98 Omit section 130 (power to remit or repay duty on goods lost or destroyed,etc).

99 (1) Section 131 (enforcement of bond in respect of goods removed withoutpayment of duty) is amended as follows.

(2) For “payment of duty” substitute “payment of excise duty”.

(3) Omit “ship, aircraft,”.

(4) In the heading, after “payment of” insert “excise”.

100 In section 133 (general provisions as to claims for drawback), at thebeginning insert—

“(A1) This section applies in relation to any claim for drawback for thepurposes of any excise duty.”

101 In section 134 (drawback and allowance on goods damaged or destroyedafter shipment), at the beginning insert—

“(A1) This section applies only for the purposes of excise duty.”

102 In section 135 (time limit on payment of drawback or allowance), after “inrespect of any drawback or allowance” insert “for the purposes of any exciseduty”.

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103 (1) Section 136 (offences in connection with claims for drawback, etc) isamended as follows.

(2) In subsection (4), for “entry”, in both places, substitute “any declaration”.


104 (1) Section 137 (recovery of duties and calculation of duties, drawbacks, etc) isamended as follows.

(2) In subsection (1), omit “customs or”.

(3) In subsection (2)—(a) for “Any duty,” substitute “Any excise duty or”, and(b) after “or rebate” insert “in relation to excise duty”.

(4) In the heading, after “of”, in both places, insert “excise”.

105 (1) Section 141 (forfeiture of ships, etc used in connection with goods liable toforfeiture) is amended as follows.

(2) In subsection (1)(a), omit “ship, aircraft,”.

(3) In subsection (2), omit “ship, aircraft,”.

(4) In subsection (3)—(a) after paragraph (a) insert—

“(aa) any railway vehicle;”, and(b) for “the master or commander” substitute “the vehicle operator”.

106 In section 154 (proof of certain other matters), in subsection (2)(c), (d) and (e),for “ship or aircraft” substitute “ship, aircraft or railway vehicle”.

107 (1) Section 159 (power to examine and take account of goods) is amended asfollows.

(2) In subsection (1)—(a) after paragraph (a) insert—

“(aa) which are subject to the control of any officer ofRevenue and Customs as a result of Part 1 of theTaxation (Cross-border Trade) Act 2018; or

(ab) which have been discharged from a Customsprocedure under Part 1 of the Taxation (Cross-borderTrade) Act 2018 so far as necessary for the purpose ofverifying any Customs declaration or any documentrequired to accompany it; or”, and

(b) in paragraph (d), for “entered” substitute “declared”.


“(4A) But, in the case of anything done for the purpose of verifying anyCustoms declaration or any document required to accompany it—

(a) the reference in subsection (4) to the proprietor of the goodsis a reference to the declarant, and

(b) if, while the goods are being moved to a place forexamination, an act which was not authorised by theCommissioners is, without reasonable excuse, done by anyperson in relation to the goods, the declarant is liable on

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summary conviction to a penalty of level 3 on the standardscale.

(4B) In subsection (4A) “the declarant”, in relation to a Customsdeclaration in respect of any goods, means—

(a) the person who has made the declaration, or(b) the person on whose behalf it was made.”

108 In section 160 (power to take samples), in subsection (4)—(a) in the opening words, for “a duty of customs or excise” substitute “a

duty of excise”, and(b) in paragraph (a), for “are first entered on importation” substitute

“are imported”.


“160ZA Examination of goods and samples: supplementary

(1) This section applies if, for the purpose of verifying any Customsdeclaration or any document required to accompany it—

(a) goods are examined under section 159, or(b) a sample of any goods is taken under section 160.

(2) The declarant is entitled to be present or represented when the goodsare examined or the sample is taken.

(3) The Commissioners may require the declarant to be present orrepresented when the goods are examined or the sample is taken,and a person who, without reasonable excuse, contravenes or fails tocomply with a direction under this subsection is liable on summaryconviction to a penalty of level 3 on the standard scale.

(4) Once any goods have been examined or a sample from them hasbeen taken (“the examined or sampled goods”), the Commissionersare entitled to regard the examined or sampled goods asrepresentative of all the goods (“the declared goods”) in respect ofwhich the declaration is made.

(5) But if the declarant proves to the satisfaction of the Commissionersthat the examined or sampled goods do not represent all the declaredgoods, the declarant may require the Commissioners to re-examineany of the declared goods or take a further sample from them.

(6) If the declared goods are no longer under the control of theCommissioners, they may refuse the request if they are not satisfiedthat the declared goods have remained in the same condition as theywere in when they ceased to be under the control of theCommissioners.

(7) In this section “the declarant”, in relation to a Customs declaration inrespect of any goods, means—

(a) the person who has made the declaration, or(b) the person on whose behalf it was made.”

110 In section 162 (power to enter land for or in connection with access to pipe-lines), after “the Customs and Excise Acts 1979” insert “or by or under Part1 of the Taxation (Cross-border Trade) Act 2018”.

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111 (1) Section 163 (power to search vehicles or vessels) is amended as follows.


(i) after “Customs and Excise Acts 1979” insert “or Part 1 of theTaxation (Cross-border Trade) Act 2018”, and

(ii) omit “or vessel”, and(b) in the words after paragraph (c), omit “or vessel”.

(3) In subsection (2), in both places, omit “or vessel”.

(4) In subsection (3), omit “This section shall apply in relation to aircraft as itapplies in relation to vehicles or vessels but”.

(5) In the heading, omit “or vessels”.

112 In section 164 (power to search persons), in subsection (4)—(a) after paragraph (d) insert—

“(da) any person in, entering or leaving a railway customsarea;

(db) any person who is on board a railway vehiclewhich—

(i) is in a railway customs area,(ii) has entered the United Kingdom but has not

yet arrived at a railway customs area in thecourse of its journey, or

(iii) has left a railway customs area and has not yetleft the United Kingdom in the course of itsjourney;”, and

(b) in paragraph (e), for “transit shed” substitute “temporary storagefacility”.

113 In section 166 (agents), after subsection (2) insert—

“(3) For the purposes of import duty, this section has effect only to theextent that alternative provision has not been made by Part 1 of theTaxation (Cross-border Trade) Act 2018 (see, in particular, section 21of that Act).”

114 In section 170 (penalty for fraudulent evasion of duty, etc), in subsection(2)(c), after “the Customs and Excise Acts 1979” insert “, or Part 1 of theTaxation (Cross-border Trade) Act 2018,”.

115 In section 171 (general provisions as to offences and penalties), in subsection(5)—

(a) for “the relevant time specified in section 43 above” substitute “thetime at which a liability to import duty is incurred”, and

(b) for “as if the goods had been imported without entry at the timewhen the proceedings were commenced” substitute “as if the timewhen the proceedings were commenced was the time at which theliability to import duty was incurred”.

116 In section 172 (regulations), in subsection (3), for “section 120” substitute“section 5, 20, 22, 25, 26(1ZA), 35A or 64”.

117 (1) Schedule 2A (supplementary provisions relating to the detention of thingsas liable to forfeiture) is amended as follows.

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(2) In paragraph 3(2)(d), for “a vehicle, the driver of the vehicle” substitute “anyother vehicle, the vehicle operator”.

(3) In paragraph 4(2)(e), for “a vehicle, the driver of the vehicle” substitute “anyother vehicle, the vehicle operator”.

PART 3

AMENDMENTS OF OTHER ENACTMENTS

Customs and Excise Duties (General Reliefs) Act 1979

118 The Customs and Excise Duties (General Reliefs) Act 1979 is amended asfollows.

119 Omit section 1 (reliefs from customs duty for conformity with EUobligations and other international obligations, etc) and the italic headingbefore it.

120 Omit section 2 (reliefs from customs duty referable to Communitypractices).

121 Omit section 3 (power to exempt particular importations of certain goodsfrom customs duty).

122 Omit section 4 (administration of reliefs under section 1 and administrationor implementation of similar Community reliefs).

123 Omit section 5 (relief from customs duty of certain goods from ChannelIslands) and the italic heading before it.

124 In the italic heading before section 7, omit “miscellaneous” and “customsand”.

125 (1) Section 7 (power to provide for reliefs from duty and value added tax inrespect of imported legacies) is amended as follows.

(2) In subsection (1), after “reliefs from” insert “excise”.

(3) In subsection (2)—(a) after “payment of” insert “excise”, and(b) after “by way of” insert “excise”.


(5) In subsection (4)(a), omit “or any Community relief”.

(6) In subsection (5)—(a) omit the definition of “Community relief”, and(b) for the definition of “duty” substitute—

““excise duty” means any duty of excise chargeable ongoods and includes any addition to the duty by virtueof section 1 of the Excise Duties (Surcharges orRebates) Act 1979;”.

(7) In the heading, after “reliefs from” insert “excise”.

126 In section 8 (relief from customs or excise duty on trade samples, labels,etc)—

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(a) in the opening words, omit “customs or”, and(b) in the heading, omit “customs or”.

127 In section 9 (relief from customs or excise duty on antiques, prizes, etc)—(a) in the opening words, omit “customs or”, and(b) in the heading, omit “customs or”.

128 Omit the italic heading before section 10.

129 In section 11 (relief from excise duty on certain foreign goods re-imported),in subsection (2), for “were entered for transit or transhipment” substitute“were declared for a transit procedure under Part 1 of the Taxation (Cross-border Trade) Act 2018”.

130 In section 12 (supply of duty-free goods to Her Majesty’s ships), omitsubsection (6).

131 (1) Section 13 (power to provide, in relation to persons entering the UnitedKingdom, for reliefs from duty and value added tax and for simplifiedcomputation of duty and tax) is amended as follows.

(2) In subsection (1)—(a) after “reliefs from” insert “excise”,(b) after “payment of” insert “excise”, and(c) after “by way of” insert “excise”.


(4) In subsection (2)—(a) after “by way of” insert “excise”, and(b) after “elect that” insert “excise”.

(5) In subsection (3)—(a) in paragraph (a), omit “, or any Community relief”, and(b) in paragraph (b), after “relieved from” insert “excise”.

(6) In subsection (3B)(b), after “any” insert “excise”.

(7) In subsection (4)—(a) omit the definition of “Community relief”, and(b) for the definition of “duty” substitute—

““excise duty” means any duty of excise chargeable ongoods and includes any addition to excise duty byvirtue of section 1 of the Excise Duties (Surcharges orRebates) Act 1979;”.

(8) In the heading—(a) after “reliefs from” insert “excise”, and(b) after “computation of” insert “excise”.

132 (1) Section 13A (reliefs from duties and taxes for persons enjoying certainimmunities and privileges) is amended as follows.

(2) In subsection (1), for “duties of customs or excise,” substitute “any relevantlevy, any duty of excise,”.

(3) In subsection (3)(a), for “any duty of customs or excise,” substitute “anyrelevant levy, any duty of excise,”.

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(4) In subsection (6), for ““duty of customs” includes” substitute ““relevantlevy” means”.

133 In section 13B (persons to whom section 13A applies), omit subsection (1)(c).

134 In section 13C (offence where relieved goods used, etc, in breach ofcondition), in subsection (1)(a), for “any duty of customs or excise,”substitute “any relevant levy, any duty of excise,”.

135 Omit section 14 (produce of the sea or continental shelf) and the italicheading before it.

136 (1) Section 15 (false statements etc in connection with reliefs from customsduties) is amended as follows.

(2) In subsection (1)—(a) in paragraph (a), for “customs duty under section 1 or 3 above or

under an EU instrument; or” substitute “import duty underregulations made under section 19 of the Taxation (Cross-borderTrade) Act 2018,”

(b) omit paragraph (b), and(c) in the words after that paragraph, for “section 1, 3 or 4 above or an

EU instrument” substitute “Part 1 of that Act”.

137 Omit section 16 (annual reports to Parliament).

138 (1) Section 17 (orders and regulations) is amended as follows.

(2) In subsection (2)—(a) omit “2 or”, and(b) omit the words from “, except where,” to the end of the subsection.

(3) In subsection (3)—(a) omit “1, 4”, and(b) omit “or regulations under section 14(3) above”.

(4) In subsection (4)—(a) omit “Subject to subsection (5) below”,(b) omit “1, 4,”, and(c) after “relief from” insert “excise”.


Isle of Man Act 1979

139 The Isle of Man Act 1979 is amended as follows.

140 In section 8 (removal of goods from Isle of Man to United Kingdom), forsubsection (3) substitute—

“(3) The goods referred to in subsection (2)(a) above do not include goodswhich have been wholly or partly relieved from duty under, orwhich are not subject to duty by virtue of, any Isle of Man equivalentto—

(a) provision made under section 19 of the Taxation (Cross-border Trade) Act 2018 relating to any relief conferred onpersons entering the United Kingdom or under section 13 ofthe Customs and Excise Duties (General Reliefs) Act 1979, or

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(b) the temporary admission procedure under Part 1 of theTaxation (Cross-border Trade) Act 2018.

(3A) Where there are conditions which apply in connection with thegoods being relieved from duty or not being subject to duty, thecustoms and excise Acts shall apply to the goods as if they wereimported into the United Kingdom when they were imported intothe Isle of Man and as if corresponding conditions apply to the goodsunder, or by virtue of, those Acts.”

141 In section 9 (removal of goods from United Kingdom to Isle of Man), insubsection (5), for “or under any EU instrument” substitute “or section 19 ofthe Taxation (Cross-border Trade) Act 2018”.

Finance Act 1994

142 The Finance Act 1994 is amended as follows.

143 In section 16 (appeals to tribunal), omit subsections (11) and (12).

144 In section 17 (interpretation), in subsection (2)—(a) omit the definition of “the Community Customs Code”, and(b) in the definition of “relevant duty”, for “means any EU customs

duty” substitute “means any customs duty”.

145 (1) Schedule 5 (decisions subject to review and appeal) is amended as follows.

(2) For the italic heading before paragraph 1 substitute “Taxation (Cross-borderTrade) Act 2018”.

(3) In paragraph 1—(a) in the opening words, from “, so far as” to “implementing that Code,”

substitute “so far as they are made under any provision made by orunder Part 1 of the Taxation (Cross-border Trade) Act 2018,”,

(b) in paragraph (a), for “transhipment” substitute “transit”,(c) after paragraph (a) insert—

“(aa) any decision as to whether or not consent to theamendment or withdrawal of any Customs orother declaration is to be given;”,

(d) for paragraph (e) substitute—“(e) any decision, in any particular case, as to whether

or not any licence, authorisation or approval is tobe granted to any person (whether in respect of anypremises, place or area or anything else);”,

(e) for paragraph (j) substitute—“(j) any decision, in any particular case, as to whether

or not a fee is to be charged to any person underregulations made under section 27 of the Taxation(Cross-border Trade) Act 2018 or as to the amountof any such fee;”,

(f) in paragraph (m), for “security”, in both places, substitute “securityor other guarantee”, and

(g) in paragraph (n)—(i) omit “customs duty or”, and

(ii) omit the words from “or to do any other thing” to the end,

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(h) after paragraph (n) insert—“(na) any decision as to the time at which or the period

within which any obligation to pay any customsduty or to do any other thing required orauthorised as a result of provision made by orunder Part 1 of the Taxation (Cross-border Trade)Act 2018 is to be complied with;”, and

(i) in paragraph (o)—(i) for “varied or revoked” substitute “varied, suspended or

revoked”, and(ii) at the end insert “, and a decision as to whether or not a

licence, authorisation or approval is to be suspended orrevoked or the terms of a licence, authorisation or approvalare to be varied”.

(4) In paragraph 2(1)—(a) for paragraph (a) substitute—

“(a) any decision made under any regulations undersection 20, 22 or 25 (approved wharf, examinationstation or temporary storage facility)—

(i) as to whether or not a mandatory conditionis met; or

(ii) as to whether or not a discretionarycondition is to be imposed, the terms of adiscretionary condition or whether or not adiscretionary condition is met;

and any reference to a mandatory condition is to acondition within subsection (1A)(a) of section 20,22 or 25 and any reference to a discretionarycondition is to a condition within subsection(1A)(b) of that section;”,

(b) after paragraph (g) insert—“(ga) any decision consisting in the imposition of a

requirement by virtue of subsection (3A) of section33 or as to what is or is not to be approved for thepurposes of paragraph (a) of that subsection;”, and

(c) omit paragraphs (j) and (k).

Terrorism Act 2000

146 In Schedule 7 to the Terrorism Act 2000 (port and border controls), inparagraph 9—

(a) in sub-paragraph (2C)(c), for “transit shed” substitute “temporarystorage facility”,

(b) in sub-paragraph (3)(d), for ““transit shed”” substitute ““temporarystorage facility””, and

(c) in sub-paragraph (4)(d), for “transit shed” substitute “temporarystorage facility”.

Finance Act 2003

147 Part 3 of the Finance Act 2003 (taxes and duties on importation andexportation: penalties) is amended as follows.

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148 (1) Section 24 (introductory) is amended as follows.

(2) In subsection (2), omit paragraphs (b), (c) and (e).

(3) In subsection (3), omit the definitions of “the European Union CustomsCode”, “Community export duty”, “Community import duty”, “customsduty of a preferential tariff country” and “preferential tariff country”.


149 In section 25 (penalty for evasion), omit subsection (3).

150 (1) Section 26 (penalty for contravention of relevant rule) is amended as follows.


“(5A) Where the conduct constituting a contravention of a relevant rule isa contravention of a condition imposed under regulations undersection 20(1A), 22(1A) or 25(1A) of the Customs and ExciseManagement Act 1979—

(a) the Treasury may by regulations provide that, in prescribedcircumstances, there are to be deemed for the purposes ofsubsection (1) of this section to be further separatecontraventions of the rule, and

(b) the provision that may be made by the regulations includesprovision replicating or applying, with or withoutmodifications, any provision made by section 20A(1A) or(1B), 22A(1A) or (1B) or 25A(1A) or (1B) of the Customs andExcise Management Act 1979.”

(3) In subsection (8)—(a) before paragraph (a) insert—

“(za) Part 1 of the Taxation (Cross-border Trade) Act 2018,as it applies in relation to the relevant tax or duty;”,and

(b) omit paragraphs (c) and (e).

(4) In subsection (9)—(a) omit the definition of “Community customs rules”, and(b) in the definition of “relevant international rules”, omit paragraph (b)

(together with the “or” before it).

151 In section 32 (no prosecution after demand notice for penalty under section26)—

(a) the existing text becomes subsection (1), and(b) after that subsection insert—

“(2) Nothing in subsection (1) prevents the bringing ofproceedings against a person for an offence under section20A(1A), 22A(1A) or 25A(1A) of the Customs and ExciseManagement Act 1979 in circumstances where it is allegedthat the person is liable to a penalty of an enhanced amount.”

152 In section 38 (admissibility of certain statements and documents), omitsubsection (3).

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Income Tax (Trading and Other Income) Act 2005

153 The Income Tax (Trading and Other Income) Act 2005 is amended asfollows.

154 In section 54 (trading income: penalties, interest and VAT surcharges), insubsection (2), in the entry relating to a penalty under section 25 or 26 of theFinance Act 2003, for “Customs, export and import duties” substitute“Customs duties”.

155 In section 869 (general calculation rules, etc: penalties, interest and VATsurcharges), in subsection (4), in the entry relating to a penalty under section25 or 26 of the Finance Act 2003, for “Customs, export and import duties”substitute “Customs duties”.

Borders, Citizenship and Immigration Act 2009

156 (1) Section 7 of the Borders, Citizenship and Immigration Act 2009 (customsrevenue functions of the Director) is amended as follows.

(2) In subsection (2), omit paragraphs (b) and (c).

(3) In subsection (7)—(a) at the end of paragraph (aa) omit “and”, and(b) after paragraph (aa) insert—

“(ab) Part 1 of the Taxation (Cross-border Trade) Act 2018,and”.

(4) In subsection (9), in paragraph (c), after “a function under” insert “retained”.

Corporation Tax Act 2009

157 In section 1303 of the Corporation Tax Act 2009 (general calculation rules,etc: penalties, interest and VAT surcharges), in subsection (2), in the entryrelating to a penalty under section 25 or 26 of the Finance Act 2003, for“Customs, export and import duties” substitute “Customs duties”.


VAT AMENDMENTS CONNECTED WITH WITHDRAWAL FROM EU

PART 1

AMENDMENTS OF VALUE ADDED TAX ACT 1994

Amendment of the Value Added Tax Act 1994

1 The Value Added Tax Act 1994 is amended as follows.

2 (1) Section 1 (imposition of charge to value added tax) is amended as follows.



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(a) for “from places outside the member States” substitute “into theUnited Kingdom”, and

(b) for “a duty of customs” substitute “import duty”.

3 In section 2 (rate of VAT), in subsection (1)—(a) omit paragraph (b) (together with the “and” at the end of the

paragraph), and(b) in paragraph (c), omit “from a place outside the member States”.

4 Omit section 3A (supplies of electronic, telecommunication andbroadcasting services: special accounting schemes).

5 In Section 5 (meaning of supply: alteration by Treasury order), in subsection(3), in the words after paragraph (c), omit the words from “and may providethat paragraph 6” to the end.

6 (1) Section 6 (time of supply) is amended as follows.


(3) In subsection (14), for “subsections (2) to (8)” substitute “subsections (2) to(6)”.

7 (1) Section 7 (place of supply of goods) is amended as follows.

(2) In subsection (1), omit “14,”.


(4) In subsection (6)(a), omit “from a place outside the member States”.



“(12) The Commissioners may by regulations provide that any rule fordetermining where a supply of goods is made is subject to suchconditions relating to the notification of matters to theCommissioners, or such other conditions, as may be specified in theregulations.”

8 In section 7A (place of supply of services), for subsection (4) substitute—

“(4) For the purposes of this Act a person is a relevant business person inrelation to a supply of services if—

(a) the person carries on a business, and(b) the services are not received by the person wholly for private

purposes,whether or not the services are received in the course of business.”

9 In section 9 (place where supplier or recipient of services belongs), omitsubsection (6).

10 In section 9A (reverse charge on gas, electricity, heat or cooling supplied bypersons outside the United Kingdom), in subsection (5)(a)—

(a) for “situated within the territory of a member State” substitute “inthe United Kingdom”, and

(b) for “such a system” substitute “a natural gas system in the UnitedKingdom”.

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11 Omit sections 10 to 14 (acquisition of goods from member States) and theitalic heading before those sections.

12 In the italic heading before section 15, omit “from outside the memberStates”.

13 For section 16 substitute—

“16 Application of customs enactments

(1) The provision made by or under—(a) the Customs and Excise Acts 1979 (as defined in the

Management Act), and(b) the other enactments for the time being having effect

generally in relation to duties of customs and excise chargedby reference to the importation of goods into the UnitedKingdom,

apply (so far as relevant) in relation to any VAT chargeable on theimportation of goods into the United Kingdom as they apply inrelation to any duty of customs or excise.

(2) The provision made by section 1(4) for VAT on the importation ofgoods to be charged and payable as if it were import duty is to betaken as applying, in relation to any VAT chargeable on theimportation of the goods, the provision made by or under Part 1 ofTCTA 2018.

(3) The Commissioners may by regulations—(a) provide for exceptions from the effect of subsection (1) or (2),

or(b) provide for the provision mentioned in subsection (1) or (2)

to have effect with modifications specified in the regulations.

(4) Subsections (1) and (2) do not apply so far as the context otherwiserequires.

(5) Regulations under section 105 of the Postal Services Act 2000 (whichprovides for the application of customs enactments to postal packets)may make special provision in relation to VAT.”


“16A Territories forming part of a customs union with UK

(1) This section applies if there are arrangements that have effect for thepurposes of import duty as a result of section 31 of TCTA 2018(territories forming part of a customs union with UK).

(2) The Commissioners may make regulations charging VAT oncustoms union acquisitions.

(3) A “customs union acquisition” is an acquisition from a country orterritory in the customs union—

(a) of goods which enter the United Kingdom, and(b) which is not exempted by the regulations.

(4) VAT chargeable under the regulations is a liability of the person whoacquires the goods and (subject to provisions about accounting andpayment) becomes due at the time of acquisition.

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(5) Among other provision that may be made, the regulations—(a) may require persons who acquire goods from a country or

territory in the customs union to register under theregulations for the purpose of accounting for VAT chargedon customs union acquisitions,

(b) may determine the cases in which goods are regarded asacquired from any country or territory, and

(c) may determine the time at which an acquisition is regardedas taking place.

(6) Regulations under this section may—(a) make different provision for different purposes, and(b) modify the application of this Act in relation to cases dealt

with by the regulations.

(7) For the purposes of this section “country or territory in the customsunion” means any country or territory with which the UnitedKingdom has a customs union within the meaning of section 31 ofTCTA 2018.”

15 After that section insert—

“16B Postal packets

(1) The Commissioners may by regulations impose a liability to VAT ona person outside the United Kingdom in respect of the entry of goodsinto the United Kingdom if the person sent, or arranged for thesending of, the goods to their recipient in a postal packet (within themeaning of the Postal Services Act 2000).

(2) The regulations may—(a) provide that a liability to VAT arises only in relation to goods

of a value described in the regulations,(b) provide that in cases specified in the regulations, other

persons are jointly and severally liable for the VAT, and(c) provide that the entry of the goods into the United Kingdom

is not an importation for the purposes of this Act.

(3) Among other provision that may be made by the regulations, theregulations may make provision—

(a) requiring persons to register under the regulations for thepurpose of accounting for VAT imposed under theregulations,

(b) modifying the application of this Act in relation to cases dealtwith by the regulations, and

(c) requiring persons to provide information to theCommissioners about the goods or the person who sent, orarranged for the sending of, the goods.

(4) Regulations under this section may make different provision fordifferent purposes.”

16 (1) Section 17 (free zone regulations) is amended as follows.

(2) In subsection (1), omit “from places outside the member States”.

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(3) In subsection (2), omit “Subject to any contrary provision made by anydirectly applicable Community provision,”.

(4) In subsection (5)(a), omit “into the United Kingdom”.

17 (1) Section 18 (place and time of acquisition or supply) is amended as follows.


“(1) A supply of goods which are subject to a warehousing regime is tobe treated, for the purposes of this Act, as taking place outside theUnited Kingdom where —

(a) those goods have been brought into the United Kingdom,(b) the material time of that supply is while those goods are

subject to that regime and before the duty point, and(c) those goods are not mixed with any dutiable goods which

were produced or manufactured in the United Kingdom.”

(3) In subsection (2)—(a) omit paragraph (a) (together with the “or” at the end of it), and(b) in paragraph (b)(i), omit “or acquired from another member State”.

(4) In subsection (3), omit “acquisition or” in both places.

(5) In subsection (4)—(a) in the opening words, omit “acquisition or” in both places,(b) in paragraph (a), omit “acquisition or”, and(c) in paragraph (b), omit “in the case of a supply,”.

(6) In subsection (6)—(a) in the definition of “dutiable goods”, in paragraph (b), omit “EU

customs duty or”,(b) in the definition of “the duty point”, in paragraph (b)—

(i) for the words from “any Community” to “be incurred”substitute “import duty is incurred in respect of the goods”,

(ii) for the words from “the corresponding” to “duty or”substitute “the time a debt in respect of any”, and

(iii) after “dutiable goods” insert “is incurred in respect of thegoods”,

(c) in the definition of “material time”—(i) in paragraph (a), omit “acquisition or” and “or 12(3)”, and

(ii) omit paragraph (b) (but not the “and” at the end of theparagraph), and

(d) in the definition of “warehouse”—(i) in the opening words, for “any member State” substitute “the

United Kingdom”,(ii) for paragraph (a) substitute—

“(a) import duty;”,(iii) in paragraph (c), omit “into any member State”, and(iv) in paragraph (d), omit the words from “or any duty” to the

end.

(7) In subsection (7)—(a) omit “(whether in the same or different member States)”, and

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(b) omit “in a member State”.

(8) In the heading, omit “acquisition or”.

18 In section 18A (fiscal warehousing), in subsection (4)—(a) in paragraph (b), omit “(as defined in the Management Act)”,(b) omit paragraphs (c) and (d), (c) in paragraph (e), for “(a) to (d)”, in both places it occurs, substitute

“(a) and (b)”, and(d) in paragraph (f), for “(a) to (d)” substitute “(a) and (b)”.

19 (1) Section 18B (fiscally warehoused goods: relief) is amended as follows.


(3) In subsection (2), omit “also”.

(4) In subsection (2A), omit “(1)(d) or”.

(5) In subsection (3), omit “acquisition or”.

(6) In subsection (4), omit “acquisition or” in both places.


“(5) VAT is chargeable on a supply made by a person who is not a taxableperson, but who would be were it not for paragraph 1(9) of Schedule1, where—

(a) subsection (4) applies to that supply, and(b) that supply is taxable and not zero-rated.”


“(6) In this section “eligible goods” means goods—(a) of a description falling within Schedule 5A,(b) in the case of imported goods—

(i) upon which any import duty has been paid ordeferred (by virtue of the customs and excise Acts orany subordinate legislation made under those Acts),and

(ii) upon which any VAT chargeable under section 1(1)(c)has been paid, or deferred (by virtue of the customsand excise Acts or any subordinate legislation madeunder those Acts), and

(c) in the case of goods subject to a duty of excise, upon whichany excise duty has been paid or deferred under section 127Aof the Management Act.”

(9) In subsection (7)—(a) for “an acquisition or supply” substitute “a supply”, and(b) for “the acquisition or supply” substitute “the supply”.

20 In section 18C (warehouses and fiscal warehouses: services), in subsection(4)(b), for “Community customs provisions or warehousing regulations”substitute “the customs and excise Acts or any subordinate legislation madeunder those Acts”.

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21 (1) Section 18D (removal from warehousing: accountability) is amended asfollows.

(2) In subsection (1), omit the words from “and any acquisition” to the end.

(3) In subsection (2)—(a) in the opening words, omit “or acquisition”, and(b) in paragraph (a), omit “or acquisition”.

22 In section 18F (sections 18A to 18E: supplementary), in subsection (1)—(a) at the appropriate place insert—

““the customs and excise Acts” has the same meaning asin the Management Act;”,

(b) in the definition of “material time”—(i) in paragraph (a), omit “acquisition or” and “or 12(3)”, and

(ii) omit paragraph (b), and(c) omit the definition of “warehousing regulations”.

23 Omit section 20 (valuation of acquisitions from other member States).

24 (1) Section 21 (value of imported goods) is amended as follows.


“(1) For the purposes of this Act, the value of imported goods is (subjectto subsections (2) to (4)) their value as if determined under TCTA2018 for the purposes of import duty (whether or not the goods aresubject to import duty).”

(3) In subsection (2)—(a) in the opening words, omit “from a place outside the member

States”, and(b) in paragraph (c), omit “from a place outside the member States” and

“or another member State”.

(4) In subsection (2A)—(a) in paragraph (a), for “the procedure specified in subsection (2B)

below” substitute “the temporary admission procedure under Part 1of TCTA 2018”, and

(b) in paragraph (b), omit “from a place outside the member States”.

(5) Omit subsection (2B).

(6) In subsection (3), in paragraph (a), omit “from a place outside the memberStates”.

(7) In subsection (4), omit “from a place outside the member States”.

(8) In subsection (6D), for “any goods imported from outside the memberStates” substitute “imported goods”.

25 (1) Section 24 (input tax and output tax) is amended as follows.

(2) In subsection (1)—(a) omit paragraph (b) (but not the “and” at the end of the paragraph),

and(b) in paragraph (c), omit “from a place outside the member States”.

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(3) In subsection (2), omit the words from “or on the acquisition” to the end.


(i) omit “, goods acquired by a taxable person from anothermember State”, and

(ii) omit “from a place outside the member States”, and(b) in paragraph (a), omit “, acquisitions”.

(5) In subsection (6)—(a) in paragraph (a)—

(i) omit “, VAT on the acquisition of goods by a taxable personfrom other member States”, and

(ii) omit “from places outside the member States”,(b) in paragraph (b)—

(i) omit “or on the acquisition of goods by him from anothermember State”,

(ii) omit “from places outside the member States”, and(iii) omit “, acquisition”, and

(c) in paragraph (c), omit “, acquisition”.

26 (1) Section 25 (payment by reference to accounting periods and credit for inputtax against output tax) is amended as follows.

(2) In subsection (1), omit paragraph (b) (together with the “and” before thatparagraph).

(3) In subsection (7)—(a) in the opening words, omit “, acquisitions”, and(b) in paragraph (a), omit “acquired or” and, in both places, omit “,

acquired”.

27 In section 26 (input tax allowable under section 25), in subsection (1), omit “,acquisitions”.

28 In section 27 (goods imported for private purposes), in subsection (1), omit“from a place outside the member States”.

29 (1) Section 29A (reduced rate) is amended as follows.

(2) In subsection (1)(b), omit “acquisition or”.


“(2) The reference in subsection (1) to an equivalent importation, inrelation to any supply that is of a description for the time beingspecified in Schedule 7A, is a reference to any importation of anygoods the supply of which would be such a supply.”

30 (1) Section 30 (zero-rating) is amended as follows.

(2) In subsection (3), for the words from “acquired in the United Kingdom” to“importation,” substitute “imported, no VAT shall be chargeable on theirimportation”.

(3) In subsection (5), omit “to a place outside the member States”.

(4) In subsection (6)(a), omit “to a place outside the member States”.

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(5) In subsection (8), for paragraph (a) substitute—“(a) the Commissioners are satisfied that the goods have been or

are to be exported to such places as may be specified in theregulations, and”.


(7) In subsection (9), for “removed from the United Kingdom” substitute“exported”.

(8) In subsection (10)—(a) in the opening words, for “subsection (8), (8A) or (9)” substitute

“subsection (8) or (9)”,(b) in paragraph (a), omit “or otherwise removed from the United

Kingdom”, and(c) in paragraph (b), for “subsection (6), (8), (8A) or (9)” substitute

“subsection (6), (8) or (9)”.

31 (1) Section 31 (exempt supplies and acquisitions) is amended as follows.

(2) In subsection (1), omit the words from “and an acquisition” to the end.

(3) In the heading, omit “and acquisitions”.

32 (1) Section 33 (refunds of VAT in certain cases) is amended as follows.

(2) In subsection (1)—(a) for paragraph (a) (together with the “and” at the end of the

paragraph) substitute—“(a) VAT is chargeable on the supply of goods or services

to, or on the importation of goods by, a body to whichthis section applies, and”, and

(b) in paragraph (b), omit “, acquisition”.

(3) In subsection (2)—(a) omit “or acquired” in both places, and(b) omit “or acquisition”.

33 (1) Section 33A (refunds of VAT to museums and galleries) is amended asfollows.

(2) In subsection (1)—(a) for paragraph (a) substitute—

“(a) VAT is chargeable on the supply of goods or servicesto, or on the importation of goods by, a body to whichthis section applies,”,

(b) in paragraph (b), omit “, acquisition”, and(c) in paragraph (c), omit “acquisition or”.


(4) In subsection (6), omit “or acquired” in both places.

(5) In subsection (8)(b)(ii), omit “acquisitions and”.

34 (1) Section 33B (refunds of VAT to Academies) is amended as follows.


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(a) for paragraph (a) (together with the “and” at the end of theparagraph) substitute—

“(a) VAT is chargeable on the supply of goods or servicesto, or on the importation of goods by, the proprietorof an Academy, and”, and




(5) In subsection (6), omit “or acquisition”.

35 (1) Section 33C (refunds of VAT to charities within section 33D) is amended asfollows.



to, or on the importation of goods by, a qualifyingcharity, and”, and


(3) In subsection (4)—(a) for “supply, acquisition or” substitute “supply or”, and(b) for “the acquisition or importation” substitute “the importation”.



36 (1) Section 33E (power to extend refunds of VAT to other persons) is amendedas follows.



to, or on the importation of goods by, a specifiedperson, and”, and


(3) In subsection (4), omit “, acquisition”.

(4) In subsection (5)—(a) in paragraph (a), omit “acquisition or”, and(b) in paragraph (b), omit “acquisition or”.



37 (1) Section 34 (capital goods) is amended as follows.


(3) In subsection (2), omit “, acquired”.

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38 (1) Section 35 (refund of VAT to persons constructing certain buildings) isamended as follows.

(2) In subsection (1)(c), omit “, acquisition”.


39 Omit section 36A (relief from VAT on acquisition if importation wouldattract relief) and the italic heading before that section.

40 (1) Section 37 (relief from VAT on importation of goods) is amended as follows.

(2) In subsection (1)—(a) omit “from places outside the member States”, and(b) omit the words from “, if and so” to the end.

(3) In subsection (2)(a), omit “from a place outside the member States”.

(4) In subsection (3)—(a) omit “from places outside the member States”, and(b) omit “from the United Kingdom or removed from any member

State”.


(i) omit “from places outside the member States”, and(ii) omit “or otherwise removed from the United Kingdom”, and

(b) omit paragraph (b).

41 In section 38 (importation of goods by taxable persons)—(a) omit “from a place outside the member States”, and(b) omit “or on the acquisition of goods by him from other member

States”.

42 In section 39 (repayment of VAT to those in business overseas), forsubsections (1) and (2) substitute—

“(1) The Commissioners may, by means of a scheme embodied inregulations, provide for the repayment, to persons carrying onbusiness wholly outside the United Kingdom, of VAT which wouldbe input tax of theirs if they were taxable persons in the UnitedKingdom.

(2) The scheme may make different provision in relation to personscarrying on business in different places.”

43 Omit section 39A (applications for forwarding of VAT repayment claims toother member States).

44 Omit section 40 (refunds in relation to new means of transport supplied toother member States).

45 (1) Section 41 (application to the Crown) is amended as follows.

(2) In subsection (3)—(a) omit “, on the acquisition of any goods by a Government department

from another member State”,(b) omit “from a place outside the member States”, and

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(c) omit “, acquisition”.


46 (1) Section 41A (supply of goods or services by public bodies) is amended asfollows.

(2) In subsection (1), for the words from “body” to “taxable persons)” substitute“public authority”.


“(2) Unless the supply is on such a small scale as to be negligible, it is tobe treated for the purposes of this Act as a supply in the course orfurtherance of a business if it is in respect of any of the followingactivities—

(a) telecommunications services,(b) supply of water, gas, electricity or thermal energy,(c) transport of goods,(d) port or airport services,(e) passenger transport,(f) supply of new goods manufactured for sale,(g) engaging in transactions in respect of agricultural products in

the exercise of regulatory functions,(h) organisation of trade fairs or exhibitions,(i) warehousing,(j) activities of commercial publicity bodies,

(k) activities of travel agents,(l) running of staff shops, cooperatives, industrial canteens, or

similar institutions, or(m) activities carried out by radio and television bodies which are

of a commercial nature.”


47 (1) Section 43 (groups of companies) is amended as follows.

(2) In subsection (1), for paragraph (c) substitute—“(c) any VAT paid or payable by a member of the group on the

importation of goods shall be treated as paid or payable bythe representative member and the goods shall be treated, forthe purposes of sections 38 and 73(7), as imported by therepresentative member;”.

(3) In subsection (1AA)—(a) in paragraph (a), omit “acquired or”,(b) in paragraph (b), omit “, acquisition”,(c) in paragraph (c)(ii), omit “, acquisition”, and(d) in the words after paragraph (c), omit “, acquisition”.

48 (1) Section 44 (supplies to groups) is amended as follows.

(2) In subsection (2), in the opening words, omit “acquisitions and”.


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49 (1) Section 45 (partnerships) is amended as follows.

(2) In subsection (1)—(a) omit paragraph (b) (together with the “or” before it), and(b) in the words after that paragraph, omit “or are acquired by such

persons from another member State”.

(3) In subsection (2), omit “or on the acquisition of goods by the partnershipfrom another member State”.

(4) In subsection (5), omit “or on the acquisition during that period by the firmof any goods from another member State”.

50 (1) Section 46 (business carried on in divisions or by unincorporated bodies,personal representatives etc) is amended as follows.

(2) In subsection (3), omit “or whether goods are acquired by such a club,association or organisation from another member State”.


51 (1) Section 47 (agents etc) is amended as follows.


“(1) Where goods are imported by a taxable person (“T”) who suppliesthem as agent for a person who is not a taxable person, then, if T actsin relation to the supply in T’s own name, the goods are to be treatedfor the purposes of this Act as imported and supplied by T asprincipal.”

(3) In subsection (4), after “through an agent,” insert “acting in the agent’s ownname,”.


52 (1) Section 48 (VAT representatives and security) is amended as follows.

(2) In subsection (1)(a), omit “or who acquires goods in the United Kingdomfrom one or more other member States”.

(3) For subsections (1A) and (1B) substitute—

“(1A) The condition mentioned in subsection (1)(ba) is that there are noarrangements in relation to the country or territory relating to VATwhich—

(a) have effect by virtue of an Order in Council under section 173of the Finance Act 2006, and

(b) contain provision of a kind mentioned in subsection (2)(a)and (b) of that section.”


53 In section 50A (margin schemes), in subsection (5), omit “, acquisition”.

54 In section 52 (trading stamp schemes)—(a) in the opening words—

(i) for “sections 19 and 20 and Schedules 6 and 7” substitute“section 19 and Schedule 6”, and

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(ii) for “in those sections and Schedules)” substitute “in thatsection and Schedule)”,

(b) omit paragraph (b) (together with the “or” before it), and(c) in the words after that paragraph—

(i) omit “or acquired”, and(ii) omit “or under any scheme of an equivalent description

which is in operation in another member State”.

55 In section 54 (farmers etc), for subsection (8) substitute—

“(8) In this section “designated activities” means activities relating tofarming, fisheries or forestry which are designated in an order madeby the Treasury.”

56 In section 55A (customers to account for tax on supplies of goods or servicesof a kind used in missing trader intra-community fraud), in the heading,omit “intra-community”.

57 In section 58 (general provisions relating to the administration andcollection of VAT), for “92(6)” substitute “58ZA(5)(a)”.


“58ZA International VAT arrangements

(1) The Commissioners may make regulations imposing obligations ontaxable persons for the purpose of giving effect to international VATarrangements.

(2) The regulations may require the submission to the Commissionersby taxable persons of statements containing such particulars of—

(a) relevant transactions in which the taxable persons areconcerned, and

(b) the persons concerned in those transactions,as may be specified in the regulations.

(3) The regulations may provide for statements about relevanttransactions to be submitted at such times and intervals, in suchcases and in such form and manner as may be specified—

(a) in the regulations, or(b) by the Commissioners in accordance with the regulations.

(4) A transaction is a “relevant transaction” for the purposes of thissection if information about it could be relevant to any internationalVAT arrangements.

(5) If any international VAT arrangements have effect—(a) any Schedule 11 information power is exercisable with

respect to matters that are relevant to those arrangements asit is exercisable with respect to matters that are relevant forany of the purposes of this Act, and

(b) any power of an officer of Revenue and Customs to obtaininformation or documents under any enactment orsubordinate legislation relating to VAT is exercisable inrelation to matters which are relevant to those arrangements.

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(6) The Commissioners may disclose information which is obtained as aresult of subsection (5) (and no obligation of secrecy, whetherimposed by statute or otherwise, prevents such disclosure) if—

(a) the disclosure is required in accordance with theinternational VAT arrangements, and

(b) the Commissioners are satisfied that the recipient is bound,or has undertaken, both to observe rules of confidentialitywhich are no less strict than those applying to theinformation in the United Kingdom and to use theinformation only for the purposes contemplated by thearrangements.

(7) Powers are exercisable as a result of subsection (5) only if theCommissioners have given (and not withdrawn) a direction inwriting authorising their use (either generally or in relation tospecified cases).

(8) The Commissioners may not make regulations under this section, orgive a direction under subsection (7), unless they consider thatmaking the regulations or giving the direction would facilitate theadministration, collection or enforcement of VAT.

(9) In this section—“international VAT arrangements” means arrangements

which—(a) have effect by virtue of an Order in Council under

section 173 of the Finance Act 2006, and(b) relate to VAT or any tax corresponding to VAT

imposed under the law of the territory, or any of theterritories, in relation to which the arrangements havebeen made, and

“Schedule 11 information power” means any power of theCommissioners under Schedule 11 relating to—

(a) the keeping of accounts,(b) the making of returns and the submission of other

documents to the Commissioners,(c) the production, use and contents of invoices,(d) the keeping and preservation of records, and(e) the furnishing of information and the production of

documents.”

59 (1) Section 62 (incorrect certificates as to zero-rating etc) is amended as follows.


(3) In subsection (2), omit paragraph (b).

60 (1) Section 65 (inaccuracies in EC sales statements or in statements relating tosection 55A) is amended as follows.

(2) In subsection (1)—(a) in paragraph (a), for “an EC sales statement” substitute “a section

55A statement”,(b) in paragraph (c), for “another EC sales statement” substitute

“another section 55A statement”, and

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(c) in paragraph (f), for “another EC sales statement” substitute “anothersection 55A statement”.

(3) In subsection (2), for “an EC sales statement” substitute “a section 55Astatement”.


(5) For subsections (6) and (7) substitute—

“(6) In this section—“section 55A statement” means a statement which is required to

be submitted to the Commissioners in accordance withregulations under paragraph 2(3A) of Schedule 11; and

“submission date”, in relation to a section 55A statement, meanswhichever is the earlier of the last day for the submission ofthe statement to the Commissioners in accordance with thoseregulations and the day on which it was in fact submitted tothem.”

(6) For the heading substitute “Inaccuracies in section 55A statements”.

61 (1) Section 66 (failure to submit EC sales statement or statement relating tosection 55A) is amended as follows.


(3) In subsection (2), for “any EC sales statement” substitute “any section 55Astatement”.

(4) In subsection (3)(b), for “any EC sales statement” substitute “any section 55Astatement”.

(5) In subsection (4)(b) for “any EC sales statement”, in both places it occurs,substitute “any section 55A statement”.

(6) In subsection (7)—(a) in paragraph (a), for “an EC sales statement” substitute “a section

55A statement”, and(b) in the words after paragraph (b), omit “, 75”.


“(9) In this section, “section 55A statement” means a statement which isrequired to be submitted to the Commissioners in accordance withregulations under paragraph 2(3A) of Schedule 11.”

(8) For the heading substitute “Failure to submit section 55A statement”.

62 In section 69 (breaches of regulatory provisions), in subsection (1), inparagraph (a), omit “, paragraph 5 of Schedule 2, paragraph 5 of Schedule 3”.

63 In section 69C (transactions connected with VAT fraud), in subsection (6), inthe words after paragraph (b)—

(a) for “(whether before or after the coming into force of this section) inother cases” substitute “in any other cases”, and

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(b) after “VAT system” insert “which were decided before the cominginto force of section 42 of TCTA 2018”.

64 (1) Section 72 (offences) is amended as follows.

(2) In subsection (2)—(a) in paragraph (b), for “35, 36 or 40” substitute “35 or 36”,(b) omit paragraph (c), and(c) in paragraph (ii), for “(b), (c) or (d)” substitute “(b) or (d)”.

(3) In subsection (5), in paragraph (a)—(a) for “35, 36 or 40” substitute “35 or 36”, and(b) omit “for a refund under any regulations made by virtue of section

13(5)”.

(4) In subsection (10)—(a) omit “, on the acquisition of the goods from another member State”,

and(b) omit “from a place outside the member States”.

65 (1) Section 73 (failure to make returns etc) is amended as follows.

(2) In subsection (3)(b), omit “, paragraph 6(2) of Schedule 2, paragraph 6(2) or(3) of Schedule 3”.

(3) In subsection (7)—(a) in paragraph (a), omit “, acquired any goods from another member

State”,(b) in paragraph (b), omit “from a place outside the member States”, and(c) in the words after paragraph (b), omit “or otherwise removed from

the United Kingdom without being exported or so removed by wayof supply”.

66 In section 74 (interest on VAT recovered or recoverable by assessment), insubsection (1)(c), omit “, under paragraph 8 of Schedule 3”.

67 Omit section 75 (assessments in cases of acquisitions of certain goods bynon-taxable persons).

68 (1) Section 76 (assessment of amounts due by way of penalty, interest orsurcharge) is amended as follows.

(2) In subsection (1), in paragraph (a), for “, section 59A, paragraph 16F ofSchedule 3B or paragraph 26 of Schedule 3BA” substitute “or 59A”.


(4) In subsection (5), omit “or (3A)” in both places.


69 Omit section 76A (section 76: cases involving special accounting schemes).

70 (1) Section 77 (assessments: time limits and supplementary assessments) isamended as follows.

(2) In subsection (1)—(a) in the opening words, omit “, 75”, and(b) in paragraph (a), omit “or acquisition”.

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(3) In subsection (2), omit “or (3A)”.

(4) In subsection (3), omit “or (3A)”.


(6) In subsection (4C)—(a) in paragraph (aa), after “Schedule 1A,” insert “or”, and(b) omit paragraphs (b), (c) and (e) (together with the “or” before

paragraph (e)).

(7) In subsection (6), omit “or 75(2)(b)”.

71 In section 78A (assessment for interest overpayments), in subsection (7)(a),for “(6)” substitute “(5)”.

72 (1) Section 80 (credit for, or repayment of, overstated or overpaid VAT) isamended as follows.

(2) In subsection (3C), in the definition of “VAT provisions”, in paragraph (a),for “, subordinate legislation or EU legislation” substitute “or subordinatelegislation”.

(3) In subsection (7), omit “(and paragraph 16I of Schedule 3B and paragraph 29of Schedule 3BA)”.

73 In section 83 (appeals), in subsection (1)—(a) in paragraph (b)—

(i) omit “, on the acquisition of goods from another memberState”, and

(ii) omit “from a place outside the member States”,(b) omit paragraph (d),(c) omit paragraph (j),(d) in paragraph (p), omit sub-paragraph (iii) (together with the “or”

before that sub-paragraph), and(e) omit paragraph (w).

74 In section 84 (further provisions relating to appeals)—(a) in subsection (4)(c), omit “, acquisition”, and(b) in subsection (6), omit “or (as the case requires) paragraph 26 of

Schedule 3BA or paragraph 16F of Schedule 3B”.

75 (1) Section 88 (supplies spanning change of rate etc) is amended as follows.

(2) In subsection (1), omit “or exempt, zero-rated or reduced-rate acquisitions”.



“(8) References in this section to a supply being a reduced-rate supply arereferences to a supply being one on which VAT is charged at the ratein force under section 29A.”

76 (1) Section 90 (failure of resolution under Provisional Collection of Taxes Act1968) is amended as follows.


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(a) in paragraph (a), omit the words from “or on the acquisition” to“20(3)”, and

(b) in paragraph (b), omit “or acquisition”.

(3) In subsection (2)—(a) in paragraph (a), omit the words from “or on the acquisition” to

“20(3)”, and(b) in paragraph (b), omit “or acquisition”.

(4) In subsection (3), for “, 35 or 40” substitute “or 35”.

77 Omit section 92 (taxation under the laws of other member States etc).

78 Omit section 93 (territories included in references to other member Statesetc).

79 Omit section 95 (meaning of “new means of transport”).

80 (1) Section 96 (other interpretative provisions) is amended as follows.

(2) In subsection (1)—(a) omit the definition of “another member State”,(b) at the appropriate place insert—

““TCTA 2018” means the Taxation (Cross-border Trade)Act 2018;”, and

““import duty” means import duty charged inaccordance with Part 1 of TCTA 2018;”,

(c) omit the definition of “taxable acquisition”, and(d) for the definition of “VAT” substitute—

““VAT” means value added tax charged in accordancewith this Act;”.


81 In section 99 (refund of VAT to Government of Northern Ireland)—(a) omit “, on the acquisition of any goods by that Government from

another member State”,(b) omit “from a place outside the member States”, and(c) omit “, acquisitions”.

82 (1) Schedule 1 (registration in respect of taxable supplies: UK establishment) isamended as follows.

(2) In paragraph 1—(a) in sub-paragraph (4)(a), omit “, paragraph 6(2) of Schedule 2,

paragraph 6(3) of Schedule 3”,(b) in sub-paragraph (5), omit “, paragraph 6(2) of Schedule 2, paragraph

6(3) of Schedule 3”,(c) in sub-paragraph (7), omit “and any taxable supplies which would

not be taxable supplies apart from section 7(4)”, and(d) in sub-paragraph (9), omit “acquisition or”.

(3) In paragraph 2(7), omit paragraph (c).

(4) In paragraph 4(3), omit “and any taxable supplies which would not betaxable supplies apart from section 7(4)”.

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(5) In paragraph 13, omit sub-paragraph (8).

83 (1) Schedule 1A (registration in respect of taxable supplies: non-UKestablishment) is amended as follows.

(2) In paragraph 3, omit paragraphs (c) and (d) (but not the “or” at the end ofparagraph (d)).

(3) Omit paragraph 12.

84 Omit Schedule 2 (registration in respect of supplies from other memberStates).

85 Omit Schedule 3 (registration in respect of acquisitions from other memberStates).

86 In Schedule 3A (registration in respect of disposals of assets for which a VATrepayment is claimed), in paragraph 1—

(a) in sub-paragraph (1), for “Schedule 1, 1A, 2 or 3” substitute“Schedule 1 or 1A”, and

(b) in sub-paragraph (2), for the words from “, paragraph 11 of Schedule1A” to the end substitute “or paragraph 11 of Schedule 1A”.

87 Omit Schedule 3B (electronic, telecommunication and broadcasting services:non-Union scheme).

88 Omit Schedule 3BA (electronic, telecommunication and broadcastingservices: Union scheme).

89 (1) Schedule 4 (matters to be treated as supply of goods or services) is amendedas follows.

(2) In paragraph 5(5)(a), omit “, acquisition”.

(3) Omit paragraph 6.

(4) In paragraph 8(2)(a), for the words from “, their acquisition” to the endsubstitute “or their importation into the United Kingdom”.

90 (1) Schedule 4A (place of supply of services: special rules) is amended asfollows.

(2) In paragraph 3—(a) in sub-paragraph (3)—

(i) in paragraph (b), for “in a country which is not a memberState” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “in that country”substitute “outside the United Kingdom”, and

(b) in sub-paragraph (4)(a), for “in a country which is not a memberState” substitute “outside the United Kingdom”.

(3) In the italic heading before paragraph 5, omit “: general”.

(4) For paragraph 5 substitute—

“5 A supply of restaurant or catering services is to be treated as madein the country in which the services are physically carried out.”

(5) Omit paragraph 6 and the italic heading before it.

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(9) In paragraph 9B—(a) in paragraph (b), for “outside the member States” substitute “outside

the United Kingdom”, and(b) in the words after that paragraph, for “wholly outside the member

States” substitute “outside the United Kingdom”.

(10) In paragraph 9C, in sub-paragraph (1)—(a) in paragraph (b), for “outside the member States” substitute “outside

the United Kingdom”, and(b) in the words after that paragraph, for “wholly outside the member

States” substitute “outside the United Kingdom”.

(11) In paragraph 9D—(a) in sub-paragraph (2)—

(i) in paragraph (b), for “outside the territories of the memberStates” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “where it is used andenjoyed” substitute “outside the United Kingdom”, and

(b) in sub-paragraph (3)(a), for “outside the territories of the memberStates” substitute “outside the United Kingdom”.

(12) In paragraph 9E—(a) in sub-paragraph (3)—


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(13) In the italic heading before paragraph 11, omit “: general”.

(14) In paragraph 11, omit sub-paragraph (3).

(15) Omit paragraph 12 and the italic heading before it.

(16) In the italic heading before paragraph 16, for “EC” substitute “UnitedKingdom and the Isle of Man”.

(17) In paragraph 16—(a) in sub-paragraph (1)(b), for “which is not a member State (other than

the Isle of Man)” substitute “other than the United Kingdom or theIsle of Man”, and

(b) in sub-paragraph (2)(f)(i)—(i) for “situated within the territory of a member State”

substitute “in the United Kingdom”, and(ii) for “such a system” substitute “a natural gas system in the

United Kingdom”.

91 In Schedule 5A (goods eligible to be fiscally warehoused), for the heading ofthe second column substitute “customs tariff (within the meaning of TCTA2018) code”.

92 (1) Schedule 6 (valuation: special cases) is amended as follows.

(2) In paragraph 1A—(a) in sub-paragraph (4)—

(i) in the definition of “motor dealer”, omit “or acquiring fromanother member State”, and

(ii) in the definition of “stock in trade”, for paragraphs (a) and (b)substitute—

“(a) produced by a motor manufacturer, or supplied to orimported by a motor dealer, for the purpose of resale,and

(b) intended to be sold within 12 months of theirproduction, supply or importation (as the case mayrequire),”, and

(b) in sub-paragraph (6)(a)—(i) omit “, acquired from another member State,”, and

(ii) omit “, acquisition”.

(3) In paragraph 3, in sub-paragraph (1)(a), in sub-paragraph (ii), omit “EUcustoms duty or”.

93 Omit Schedule 7 (valuation of acquisitions from other member States:special cases).

94 In Schedule 7A (charge at reduced rate), in Group 3 (grant-fundedinstallation of heating equipment or security goods or connection of gassupply), in paragraph 2(3) of the Notes to that Group, omit sub-paragraph(e).

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95 (1) Schedule 8 (zero-rating) is amended as follows.

(2) In Part 1, in the index, omit the entry relating to European ResearchInfrastructure Consortia.

(3) In Group 7 (international services)—(a) in the opening words of item 1—

(i) omit “or acquired”,(ii) for “any of the member States” substitute “the United

Kingdom”, and(iii) omit “to a place outside the member States”,

(b) in paragraph (b) of item 1, for “member States” substitute “UnitedKingdom”, and

(c) in item 2—(i) in paragraph (a), omit “to a place outside the member States”,

and(ii) in paragraph (c), for “member States” substitute “United

Kingdom”.

(4) In Group 8 (transport)—(a) in item 5, for “member States” substitute “United Kingdom”,(b) in paragraph (a) of item 11, for sub-paragraphs (i) and (ii)

substitute—“(i) the transport of goods to or from a place—

(a) from which they are to be exported,or

(b) to which they have been imported,(ii) the handling or storage of those goods at

that place, or(iii) the handling or storage of those goods in

connection with their transport to or fromthat place, or”,

(c) in item 12, after “enjoyed outside” insert “the United Kingdom or”,(d) omit item 13,(e) in Note (C1), omit the definition of “State institution”, and(f) omit Note (9).

(5) In Group 12 (drugs, medicines, aids for the disabled)—(a) in Note (1)—

(i) omit “acquired from another member State or”, and(ii) omit “from a place outside the member States”,

(b) in Note (5N), in paragraph (b), omit “reckonable zero-ratedacquisition, or”,

(c) in Note (5O)—(i) in paragraph (b), omit “acquisition or”, and

(ii) in the words after paragraph (b), omit “or acquisition”, and(d) in Note (5T)—

(i) omit the definition of “reckonable zero-rated acquisition”,and

(ii) in the definition of “reckonable zero-rated importation”, omit“from a place outside the member States”.

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(6) In Group 13 (imports, exports, etc)—(a) for item 1 substitute—

“1 The supply of imported goods before a Customsdeclaration has been made under Part 1 of TCTA 2018 inrespect of those goods where the supplier and thepurchaser of the goods have agreed that the purchaser willmake the Customs declaration.”,

(b) in item 3, omit “to places outside the member States”, and(c) in Note (5), omit the words from “, another member State, any” to the

end.

(7) In Group 15 (charities etc), in item 3, omit “to a place outside the memberStates”.

(8) In Group 16 (clothing and footwear)—(a) in Note (4)(b), for sub-paragraphs (i) and (ii) substitute—

“(i) are manufactured to standards whichsatisfy the requirements of regulation 8(2)of the Personal Protective EquipmentRegulations 2002, and

(ii) bear the mark of conformity required bythat regulation.”, and

(b) in Note (4A)(b), for sub-paragraphs (i) and (ii) substitute—“(i) is manufactured to standards which satisfy

the requirements of regulation 8(2) of thePersonal Protective Equipment Regulations2002, and

(ii) bears the mark of conformity required bythat regulation.”

(9) Omit Group 18 (European Research Infrastructure Consortia).

96 (1) Schedule 9 (exemptions) is amended as follows.

(2) In Group 5 (finance)—(a) in item 9—

(i) in paragraph (i), for “another EEA state” substitute “an EEAstate”, and

(ii) in paragraph (j), for “another EEA state” substitute “an EEAstate”, and

(b) in Note (6), in the definition of “recognised collective investmentscheme constituted in another EEA state”, for “another EEA state”substitute “an EEA state”.

(3) In Group 14 (supplies of goods where input tax cannot be recovered)—(a) in paragraph (a) of item 1, omit “or acquisition”,(b) in Note (7)(a), omit “or acquisition”,(c) in Note (9)—

(i) in the opening words, omit “or acquisition”, and(ii) in paragraph (b), omit “or acquisition”,

(d) in Note (10), omit “, acquisition” in both places, and(e) in Note (15), omit “, acquisition” in both places.

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(4) In Group 16 (supplies of services by groups involving cost sharing), in item1, in paragraph (a), for the words from “in relation to” to the end substitute“is not carried on in the course or furtherance of carrying on a business,”.

97 (1) Schedule 9A (anti-avoidance provisions: groups) is amended as follows.

(2) In paragraph 1(5)(a), omit “acquisition or”.

(3) In paragraph 6(10)(a), for “(6)” substitute “(5)”.

98 (1) Schedule 11 (administration, collection and enforcement) is amended asfollows.

(2) In paragraph 2—(a) omit sub-paragraphs (3) and (3ZA),(b) omit sub-paragraphs (4) and (5),(c) in sub-paragraph (5A), for paragraph (b) substitute—

“(b) where notification of the arrival of a means oftransport imported into the United Kingdom isrequired by virtue of paragraph (a), for requiringany VAT on its importation to be paid at such timeand in such manner as may be specified in theregulations.”,

(d) in sub-paragraph (5B)(a), omit “acquisition or”,(e) in sub-paragraph (5D)—

(i) omit the definition of “means of transport”, and(ii) in the definition of “relevant person”—

(a) omit paragraph (a),(b) in paragraph (b), omit “from a place outside the

member States”, and(c) omit paragraph (c),

(f) after sub-paragraph (5D) insert—

“(5E) For the purposes of sub-paragraphs (5A) to (5D) “means oftransport” means—

(a) any ship which exceeds 7.5 metres in length,(b) any aircraft the take-off weight of which exceeds

1550 kilograms, or(c) any motorised land vehicle which—

(i) has an engine with a displacement orcylinder capacity exceeding 48 cubiccentimetres, or

(ii) is constructed or adapted to be electricallypropelled using more than 7.2 kilowatts,

but only if the ship, aircraft or vehicle is intended for thetransport of persons or goods.

(5F) The Treasury may by order vary sub-paragraph (5E) byadding or deleting any ship, aircraft or vehicle of adescription specified in the order to or from those whichare for the time being specified there.”,

(g) in sub-paragraph (8)—(i) omit paragraph (b) (together with the “or” before it), and

(ii) in the words after paragraph (b), omit “or acquisition”, and

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(h) omit sub-paragraph (9).

(3) In paragraph 2A(2), in paragraph (b), omit “or the law of another memberState”.

(4) In paragraph 3(2), omit paragraph (c).

(5) In paragraph 6(1), omit the words from “, and every person who” to the end.

(6) For paragraph 8(1) substitute—

“(1) An authorised person may take samples from goods that are in thepossession of either a person who supplies goods or a fiscalwarehousekeeper if it appears necessary to do so—

(a) to protect the revenue against mistake or fraud, and(b) to determine how the goods, or the material of which they

are made, ought to be or to have been treated for thepurposes of VAT.”

(7) In paragraph 14(1), in paragraph (c), for “2(3) or (4)” substitute “2(5A)”.

99 In Schedule 11A (disclosure of avoidance schemes), in paragraph 2A, in sub-paragraph (2)—

(a) omit paragraph (b) (but not the “and” at the end of the paragraph),and

(b) in paragraph (c), omit “from a place outside the member States”.

Effect of amendments made by this Part of this Schedule

100 (1) If an amendment made by this Part of this Schedule to a provision of theValue Added Tax Act 1994 has the effect of removing a reference to theprincipal VAT directive or the implementing VAT regulation, the removal isnot to be taken as implying that the directive or regulation is no longerrelevant for determining the meaning and effect of that provision.

(2) In this paragraph “the principal VAT directive” and “the implementing VATregulation” have the same meaning as in section 42.

PART 2

AMENDMENTS OF OTHER ENACTMENTS

Diplomatic Privileges Act 1964

101 In section 2 of the Diplomatic Privileges Act 1964 (application of ViennaConvention), in subsection (5A)—

(a) for “10 or 15” substitute “1(1)(c)”, and(b) for “(acquisitions from other member States and importations from

outside the European Union)” substitute “(imposition of charge tovalue added tax on imported goods)”.

Commonwealth Secretariat Act 1966

102 In paragraph 10 of the Schedule to the Commonwealth Secretariat Act 1966(immunities and privileges), in sub-paragraph (1A)—

(a) for “10 or 15” substitute “1(1)(c)”, and

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(b) for “(acquisitions from other member States and importations fromoutside the European Union)” substitute “(imposition of charge tovalue added tax on imported goods)”.

Consular Relations Act 1968

103 (1) The Consular Relations Act 1968 is amended as follows.

(2) In section 1 (application of Vienna Convention), in subsection (8A)—(a) for “10 or 15” substitute “1(1)(c)”, and(b) for “(acquisitions from other member States and importations from


(3) In section 8 (refund of customs duty on hydrocarbon oils), in subsection (1),omit “or acquisition from another member State”.

International Organisations Act 1968

104 In paragraph 19 of Schedule 1 to the International Organisations Act 1968(privileges and immunities), in sub-paragraph (c)—



Diplomatic and other Privileges Act 1971

105 In section 1 of the Diplomatic and other Privileges Act 1971 (refund ofcustoms duties on hydrocarbon oil used for diplomatic or CommonwealthSecretariat purposes), in subsection (5)—



Customs and Excise Duties (General Reliefs) Act 1979

106 In section 13 of the Customs and Excise Duties (General Reliefs) Act 1979(power to provide, in relation to persons entering the United Kingdom, forreliefs from duty and value added tax and for simplified computation ofduty and tax), in subsection (4), in the definition of “value added tax”, omitthe words from “from places outside” to the end.

Finance Act 1994

107 In the Finance Act 1994, in Schedule 5 (decisions subject to review andappeal), in paragraph 9B, for “third country goods” substitute “importedgoods”.

Vehicle Excise and Registration Act 1994

108 In section 8 of the Vehicle Excise and Registration Act 1994 (vehiclesremoved into UK), in subsection (2)—

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(a) for paragraph (a) substitute—“(a) that any value added tax charged on any supply

involving the removal of the vehicle into theUnited Kingdom has been or will be paid orremitted,”,

(b) in paragraph (b), omit “from a place outside the member States”, and(c) in paragraph (c), omit “acquisition or”.

Finance Act 2003


110 In section 24 (taxes and duties on importation and exportation: penalties), insubsection (3), in the definition of “import VAT”, for “from places outsidethe member States” substitute “into the United Kingdom”.

111 In section 26 (penalty for contravention of relevant rule), in subsection (8),omit paragraph (d).

Finance Act 2007

112 (1) Paragraph 1 of Schedule 24 to the Finance Act 2007 (penalties for errors) isamended as follows.

(2) In the table, omit the third entry relating to VAT (return under a specialscheme).

(3) Omit sub-paragraphs (4A) to (4C).

Finance Act 2008


114 (1) Schedule 36 (information and inspection powers) is amended as follows.

(2) In paragraph 11—(a) in sub-paragraph (1), omit paragraph (b) (but not the “or” at the end

of that paragraph), and(b) in sub-paragraph (2), in paragraph (c), omit the words from “, the

acquisition” to “acquisitions”.


(i) omit paragraph (b) (but not the “or” at the end of thatparagraph), and

(ii) in paragraph (c), omit “from a place outside the memberStates”, and

(b) in sub-paragraph (4), omit “, 11”.

(4) In paragraph 63, in sub-paragraph (3), omit paragraph (b) (but not the “and”at the end of that paragraph).

115 (1) Schedule 41 (penalties: failure to notify and certain VAT and excisewrongdoing) is amended as follows.

(2) In paragraph 1, in the table—

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(a) omit the second entry relating to Value Added Tax (obligation tonotify under Schedule 2 to the Value Added Tax Act 1994),

(b) omit the third entry relating to Value Added Tax (obligations tonotify under Schedule 3 to the Value Added Tax Act 1994), and

(c) omit the fifth entry relating to Value Added Tax (obligation to notifyunder regulations made under paragraph 2(4) of Schedule 11 to theValue Added Tax Act 1994).

(3) In paragraph 7—(a) omit sub-paragraph (5),(b) in sub-paragraph (6)—

(i) for “any other” substitute “a”, and(ii) omit “, but subject to sub-paragraph (8)”,

(c) in sub-paragraph (7), in paragraph (a), omit “, paragraph 8(2) ofSchedule 3 to that Act”, and

(d) omit sub-paragraph (8).

Finance Act 2009


117 In section 101 (late payment interest on sums due to HMRC), omitsubsections (10) and (11).

118 In section 108 (suspension of penalties during currency of agreement fordeferred payment), in the table in subsection (5), in the entry relating tovalue added tax, omit “or under paragraph 16F of Schedule 3B, or paragraph26 of Schedule 3BA, to that Act”.

119 (1) Schedule 55 (penalty for failure to make returns etc) is amended as follows.

(2) In paragraph 1—(a) in sub-paragraph (4), in the definition of “filing date”, omit “(or, in

the case of a return mentioned in item 7AA or 7AB of the Table, tothe tax authorities to whom the return is required to be delivered)”,and

(b) in the table, omit items 7AA and 7AB (returns relating to Schedules3BA and 3B to the Value Added Tax Act 1994).

(3) In paragraph 13A, in sub-paragraph (1), for “7A to 7B” substitute “7A, 7B”.

120 In paragraph 1 of Schedule 56 (penalty for failure to make payments ontime), in the table—

(a) omit items 6BA and 6BB (amounts payable under returns relating toSchedules 3B and 3BA to the Value Added Tax Act 1994), and

(b) omit items 13AA and 13AB (amounts assessed under section 73(1) ofthe Value Added Tax Act 1994 by virtue of Schedules 3B and 3BA ofthat Act).

Finance Act 2011

121 In paragraph 45 of Schedule 23 to the Finance Act 2011 (power to obtaindata: meaning of “tax”), in sub-paragraph (3), omit paragraph (b) (togetherwith the “and” before that paragraph).

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Finance Act 2016

122 In Schedule 18 to the Finance Act 2016 (serial tax avoidance)—(a) in paragraph 5(4)—

(i) omit paragraph (b) (but not the “and” at the end of theparagraph), and

(ii) in paragraph (c), omit “from a place outside the memberStates”,

(b) in paragraph 6(2)—(i) omit paragraph (b) (but not the “and” at the end of the

paragraph), and(ii) in paragraph (c), omit “from a place outside the member

States”, and(c) in paragraph 36(8)—

(i) omit paragraph (b), and(ii) in paragraph (c), omit “from a place outside the member

States”.

Finance (No. 2) Act 2017

123 The Finance (No. 2) Act 2017 is amended as follows.

124 (1) Section 48 (carrying on a third country goods fulfilment business) isamended as follows.

(2) In subsection (1)—(a) in the opening words, for “a third country goods” substitute “an

imported goods”,(b) in paragraph (a)—

(i) for “third country goods” substitute “imported goods”, and(ii) for “established in a Member State” substitute “UK-

established”, and(c) in paragraph (b)—

(i) for “third country goods” substitute “imported goods”, and(ii) for “established in a Member State” substitute “UK-

established”.

(3) In subsection (3), for “a third country goods” substitute “an importedgoods”.


“(4) Goods are “imported goods” if they have been imported into theUnited Kingdom for the purposes of VATA 1994 (as to which, seesection 15).

(5) A person is “UK-established” if the person’s business establishmentis in the United Kingdom as determined for the purposes of section9 of VATA 1994.”

(5) In the heading, for “a third country goods” substitute “an imported goods”.

125 In section 49 (requirement for approval), in subsections (1) to (3) and (5), for“a third country goods” substitute “an imported goods”.

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126 In section 50 (register of approved persons), in subsection (3), for “a thirdcountry goods” substitute “an imported goods”.

127 In section 51 (regulations relating to approval, registration etc), in subsection(1)(d), for “a third country goods” substitute “an imported goods”.

128 In section 53 (offence), in subsections (1)(a) and (2)(a), for “a third countrygoods” substitute “an imported goods”.

129 In section 54 (forfeiture), in subsections (1)(a) and (2)(b), for “a third countrygoods” substitute “an imported goods”.

130 In section 55 (penalties), in subsection (1), for “a third country goods”substitute “an imported goods”.

131 (1) Schedule 13 (third country goods fulfilment businesses: penalty) is amendedas follows.

(2) In paragraph 1(1)(a), for “a third country goods” substitute “an importedgoods”.

(3) In the heading of the Schedule, for “Third country goods” substitute“Imported goods”.

132 In Schedule 17 (disclosure of tax avoidance schemes: VAT and other indirecttaxes), in paragraph 6—

(a) in sub-paragraph (3)—(i) omit paragraph (b), and

(ii) in paragraph (c), omit “from a place outside the memberStates”, and

(b) in sub-paragraph (5)—(i) omit paragraph (b), and

(ii) in paragraph (c), omit “from a place outside the memberStates”.

Consequential repeals

133 In consequence of the amendments made by the other provisions of thisSchedule, the following are repealed or revoked—

(a) in the Finance Act 1996, paragraphs 3, 4, 6, 7, 14 and 15 of Schedule 3,(b) in the Postal Services Act 2000, paragraph 22 of Schedule 8,(c) in the Finance Act 2001, section 100(2) and paragraph 4(4) and (5) of

Schedule 31,(d) in the Finance Act 2002, section 25,(e) in the Finance Act 2003, section 23 and Schedule 2,(f) in the Finance Act 2006, section 19(3) and (4),(g) in the Finance Act 2009, section 78,(h) in the Transfer of Tribunal Functions and Revenue and Customs

Appeals Order 2009, paragraph 227 of Schedule 1,(i) in the Corporation Tax Act 2010, paragraph 285(c) of Schedule 1,(j) in the Finance Act 2012—

(i) paragraphs 14, 15 and 17 of Schedule 28, and(ii) paragraphs 2(2), 9, 10 and 12(3), (6) and (7) of Schedule 29,

(k) in the Value Added Tax (Relief for European Research InfrastructureConsortia) Order 2012, article 3,

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(l) in the Finance Act 2014, sections 103 and 104(4) and Schedule 22,(m) in the Bankruptcy (Scotland) Act 2016 (Consequential Provisions

and Modifications) Order 2016, paragraph 12(3) and (8) of Schedule1,

(n) in the Finance Act 2016, section 123(12), and(o) in the Value Added Tax (Increase of Registration Limits) Order 2017,

article 4.


EXCISE DUTY AMENDMENTS CONNECTED WITH WITHDRAWAL FROM EU

Customs and Excise Management Act 1979

1 The Customs and Excise Management Act 1979 is amended as follows.

2 In section 101 (excise licences), in subsection (4), after “the Customs andExcise Acts 1979” insert “or made by regulations under section 45 of theTaxation (Cross-border Trade) Act 2018”.

3 (1) Section 157 (bonds and security) is amended as follows.


(3) In subsection (2)—(a) in paragraph (a), for the words from “either” to “United Kingdom”

substitute “on behalf of Her Majesty”, and(b) omit the sentence after paragraph (c).

(4) In consequence of the amendments made by this paragraph, in section 27 ofthe Finance Act 2000, omit subsections (3), (5) and (6).

Hydrocarbon Oil Duties Act 1979

4 The Hydrocarbon Oil Duties Act 1979 is amended as follows.

5 (1) Section 13AC (use of rebated kerosene for private pleasure-flying) isamended as follows.


“(6A) In this section “private pleasure-flying” means the use of an aircraftotherwise than for commercial purposes by—

(a) the owner of the aircraft, or(b) any other person entitled to use it.

(6B) For the purposes of subsection (6A), the cases in which an aircraft isto be regarded as used for commercial purposes include any casewhere—

(a) consideration is provided by any person for the use of theaircraft (whether for the carriage of passengers or goods orfor the supply of services or otherwise), or

(b) the aircraft is used for the purposes of any public authority.

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(6C) Regulations may provide for other cases in which use of an aircraftis treated as being, or not being, private pleasure-flying for thepurposes of this section.”

(3) In subsection (7), omit the definition of “private pleasure-flying”.

6 (1) Section 14E (rebated heavy oil and bioblend: private pleasure craft) isamended as follows.


(3) After that subsection insert—

“(7B) In this section “private pleasure craft” means any aircraft or vesselused otherwise than for commercial purposes by—

(a) the owner of the aircraft or vessel, or(b) any other person entitled to use it.

(7C) For the purposes of subsection (7B), the cases in which an aircraft orvessel is to be regarded as used for commercial purposes include anycase where—

(a) consideration is provided by any person for the use of theaircraft or vessel (whether for the carriage of passengers orgoods or for the supply of services or otherwise), or

(b) the aircraft or vessel is used for the purposes of any publicauthority.

(7D) Regulations may provide for other cases in which any aircraft orvessel is treated as being, or not being, a private pleasure craft for thepurposes of this section.”

(4) In subsection (8), omit the definition of “private pleasure craft”.

(5) In consequence of the amendment made by sub-paragraph (2), omit section189 of the Finance Act 2012.

Tobacco Products Duty Act 1979

7 In section 5 of the Tobacco Products Duty Act 1979 (retail price of cigarettes),in subsection (1A)(a), for “a member State” substitute “the UnitedKingdom”.

Finance Act 1994

8 (1) In section 12 of the Finance Act 1994 (assessments to excise duty), omitsubsection (2A).

(2) In consequence of the amendment made by sub-paragraph (1), omitregulation 9 of the Excise Duty Points (Duty Suspended Movements ofExcise Goods) Regulations 2001.

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Bill 128 57/1


© Parliamentary copyright House of Commons 2017This publication may be reproduced under the terms of the Open Parliament Licence, which is published at

www.parliament.uk/site-information/copyright

PUBLISHED BY AUTHORITY OF THE HOUSE OF COMMONS

A

B I L LTo impose and regulate a duty of customs by reference to the importation of goodsinto the United Kingdom; to confer a power to impose and regulate a duty of customsby reference to the export of goods from the United Kingdom; to make otherprovision in relation to any duty of customs in connection with the withdrawal of theUnited Kingdom from the EU; to amend the law relating to value added tax, and thelaw relating to any excise duty on goods, in connection with that withdrawal; and forconnected purposes.

The Chairman of Ways and Means,the Prime Minister,

the Chancellor of the Exchequer,Secretary Liam Fox,

Secretary Greg Clark,Elizabeth Truss,

Mel Stride,Stephen Barclay,

and Andrew Jones.

Ordered, by The House of Commons, to be Printed, 20 November 2017.

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